STAMFORD, Conn., Jan. 24, 2020 /PRNewswire/ -- Synchrony Financial
(NYSE: SYF) today announced fourth quarter 2019 net earnings of
$731 million, or $1.15 per diluted share; this includes a
$38 million pre-tax, $28 million after-tax, or $0.05 per diluted share benefit from a reduction
in the reserve related to the sale of the Walmart consumer
portfolio, which was completed in October. Highlights
included*.
- Loan receivables decreased 6% to $87.2
billion; loan receivables grew 5% on a Core** basis
- Interest and fees on loans decreased 6% to $4.5 billion; interest and fees on loans
increased 5% on a Core basis
- Purchase volume was flat at $40.2
billion; purchase volume was up 7% on a Core basis
- Average active accounts decreased 5% to 74 million; average
active accounts grew 3% on a Core basis
- Deposits grew $1.1 billion, or
2%, to $65.1 billion
- Announced a new partnership with Verizon making Synchrony the
exclusive issuer of Verizon's co-branded consumer credit card which
will be launched in the first half of this year
- Established new Payment Solutions relationships: Mor Furniture
for Less, Grand Home Furnishings, Travis Industries, and Leisure
Pro
- Renewed key Payment Solutions relationships: Rooms To Go,
BuyMax Alliance, CFMOTO, and Continental Tires
- CareCredit established a new relationship with Kaiser
Permanente, bringing the number of health systems under contract to
five, and renewed a key relationship with Demant
- Paid quarterly common stock dividend of $0.22 per share and repurchased $1.4 billion of Synchrony Financial common
stock
- Issued $750 million of preferred
stock
"2019 marked another year of significant transformation for
Synchrony. During the year we renewed over 50 partnerships
and won 30 new business deals, expanded our CareCredit, Auto and
Home networks, significantly enhanced the digital experience for
our cardholders, and substantially grew our direct-to-consumer
deposit platform. The consistent investments we have made in people
and technology have propelled our company forward and empowered
leading offerings for our partners and enhanced capabilities and
user experiences for our cardholders. Organic growth
continues to present the largest opportunity as we have
demonstrated in our ability to not only grow existing programs, but
also launch new programs with fast-growing partners in new
markets," said Margaret Keane, Chief
Executive Officer of Synchrony Financial. "Further, we remain
focused on executing a capital allocation strategy that helps to
drive growth at attractive risk adjusted returns, while maintaining
a strong balance sheet and the ability to continue to return
capital to shareholders."
Business and Financial Highlights for the Fourth Quarter of
2019*
Earnings
- Net interest income decreased $304
million, or 7%, to $4.0
billion, with the impact from the sale of the Walmart
consumer portfolio offsetting loan receivables growth.
- Retailer share arrangements increased $174 million, or 20%, to $1.0 billion, mainly driven by improved program
performance and growth in loan receivables.
- Provision for loan losses decreased $348
million, or 24%, to $1.1
billion, largely driven by a lower core reserve build and a
reduction in net charge-offs.
- Other income increased $40
million, or 63%, to $104
million, largely driven by lower loyalty program costs as a
result of the sale of the Walmart consumer portfolio.
- Other expense remained flat at $1.1
billion and included a restructuring charge of $21 million included in employee costs.
- Net earnings totaled $731 million
compared to $783 million last
year.
Balance Sheet
- Period-end loan receivables decreased 6%; On a Core basis, loan
receivables increased 5%, purchase volume growth was 7%, and
average active accounts increased 3%.
- Deposits grew to $65.1 billion,
up $1.1 billion, or 2%, and comprised
77% of funding.
- The Company's balance sheet remained strong with total
liquidity (liquid assets and undrawn credit facilities) of
$23.4 billion, or 22.3% of total
assets.
- The estimated fully phased-in Common Equity Tier 1 ratio under
Basel III was 14.1%, compared to 14.0%, reflecting the Company's
strong capital generation capabilities while deploying capital
through organic growth, program acquisitions, and continued
execution of our capital plans.
Key Financial Metrics
- Return on assets was 2.7% and return on equity was 19.0%.
- Net interest margin was 15.01%.
- Efficiency ratio was 34.8%.
Credit Quality
- Loans 30+ days past due as a percentage of total period-end
loan receivables were 4.44% compared to 4.76% last year; excluding
the PayPal Credit program and the Walmart portfolio, the rate was
flat compared to last year.
- Net charge-offs as a percentage of total average loan
receivables were 5.15% compared to 5.54% last year; excluding the
PayPal Credit program and the Walmart portfolio, the rate decreased
approximately 15 basis points compared to last year.
- The allowance for loan losses as a percentage of total
period-end loan receivables was 6.42% compared to 6.90% last
year.
Sales Platforms
- Retail Card period-end loan receivables decreased 12%;
period-end loan receivables increased 4% on a Core basis primarily
driven by digital partners. Interest and fees on loans decreased
10%, purchase volume decreased 2%, and average active accounts
decreased 7%, primarily driven by the sale of the Walmart consumer
portfolio.
- Payment Solutions period-end loan receivables grew 4%, which
included the impact of the reclassification of the Yamaha portfolio
to loan receivables held for sale; period-end loan receivables
increased 7% on a Core basis led by home furnishings and home
specialty. Interest and fees on loans increased 4%, primarily
driven by the loan receivables growth. Purchase volume growth was
6% and average active accounts increased 3%.
- CareCredit period-end loan receivables grew 8%, led by dental
and veterinary. Interest and fees on loans increased 9%, primarily
driven by the loan receivables growth. Purchase volume growth was
12% and average active accounts increased 5%.
* All comparisons are for the fourth quarter of 2019 compared
to the fourth quarter of 2018, unless otherwise
noted.
**Financial measures shown above on a Core basis
are non-GAAP measures and exclude from both the prior year and the
current year amounts related to the Walmart and Yamaha portfolios,
sold in October 2019 and January 2020, respectively. 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 and the Company's Annual Report
on Form 10-K for the fiscal year ended December 31, 2018, as filed February 15, 2019, and the Company's forthcoming
Annual Report on Form 10-K for the year ended December 31, 2019. 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 Information
On Friday, January 24, 2020, at
7:30 a.m. Eastern Time, Margaret Keane, Chief Executive Officer,
Brian Doubles, President, and
Brian Wenzel, 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.synchronyfinancial.com, under
Events and Presentations. A replay will be available on the website
or by dialing (888) 843-7419 (U.S. domestic) or (630) 652-3042
(international), passcode 42019#, and can be accessed beginning
approximately two hours after the event through February 7, 2020.
About Synchrony Financial
Synchrony (NYSE: SYF) is a premier consumer financial services
company. We deliver a wide range of specialized financing programs,
as well as innovative consumer banking products, across key
industries including digital, retail, home, auto, travel, health
and pet. Synchrony enables our partners to grow sales and loyalty
with consumers. We are one of the largest issuers of private label
credit cards in the United States;
we also offer co-branded products, installment loans and consumer
financing products for small- and medium-sized businesses, as well
as healthcare providers.
Synchrony is changing what's possible through our digital
capabilities, deep industry expertise, actionable data insights,
frictionless customer experience and customized financing
solutions.
For more information, visit www.synchrony.com and Twitter:
@Synchrony.
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" 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 Retail Card partners, promotion and
support of our products by our partners, and financial performance
of our partners; cyber-attacks or other security breaches; 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; 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, the sufficiency of our allowance
for loan losses and the accuracy of the assumptions or estimates
used in preparing our financial statements; 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 and strategic investments;
reductions in interchange fees; fraudulent activity; failure of
third parties to provide various services that are important to our
operations; disruptions in the operations of our computer systems
and data centers; 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; damage to our reputation; 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; a
material indemnification obligation to GE under the tax sharing and
separation agreement with GE if we cause the split-off from GE or
certain preliminary transactions to fail to qualify for tax-free
treatment or in the case of certain significant transfers of our
stock following the split-off; 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 Consumer Financial Protection Bureau's regulation of
our business; 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
Synchrony 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.
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" in the Company's Annual Report on
Form 10-K for the fiscal year ended December
31, 2018, as filed on February 15,
2019. 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
"tangible common equity" and certain "Core" financial measures that
have been adjusted to exclude amounts related to the Walmart and
Yamaha portfolios, sold in October
2019 and January 2020,
respectively, 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
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FINANCIAL
SUMMARY
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(unaudited, in
millions, except per share statistics)
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Quarter
Ended
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Twelve Months
Ended
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|
Dec 31,
2019
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|
Sep 30,
2019
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|
Jun 30,
2019
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|
Mar 31,
2019
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|
Dec 31,
2018
|
|
4Q'19 vs.
4Q'18
|
|
Dec 31,
2019
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|
Dec 31,
2018
|
|
YTD'19 vs.
YTD'18
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EARNINGS
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Net interest
income
|
$4,029
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$4,389
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|
$4,155
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|
$4,226
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$4,333
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$(304)
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(7.0)%
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$16,799
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$16,118
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$681
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4.2%
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Retailer share
arrangements
|
(1,029)
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|
(1,016)
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(859)
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(954)
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(855)
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(174)
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20.4%
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(3,858)
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(3,099)
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(759)
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24.5%
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Provision for loan
losses
|
1,104
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|
1,019
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|
1,198
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859
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1,452
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(348)
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(24.0)%
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|
4,180
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5,545
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|
(1,365)
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(24.6)%
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Net interest
income, after retailer share arrangements and provision for loan
losses
|
1,896
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|
2,354
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|
2,098
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|
2,413
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|
2,026
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(130)
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(6.4)%
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|
8,761
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|
7,474
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|
1,287
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17.2%
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Other
income
|
104
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85
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|
90
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|
92
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64
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40
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62.5%
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|
371
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|
265
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|
106
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40.0%
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Other
expense
|
1,079
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|
1,064
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|
1,059
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|
1,043
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|
1,078
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1
|
0.1%
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|
4,245
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|
4,095
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|
150
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3.7%
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Earnings before
provision for income taxes
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921
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1,375
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1,129
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|
1,462
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1,012
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(91)
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(9.0)%
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|
4,887
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|
3,644
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|
1,243
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34.1%
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Provision for income
taxes
|
190
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|
319
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|
276
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355
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|
229
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(39)
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(17.0)%
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|
1,140
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854
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|
286
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33.5%
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Net
earnings
|
$731
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|
$1,056
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|
$853
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$1,107
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$783
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$(52)
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(6.6)%
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|
$3,747
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|
$2,790
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|
$957
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34.3%
|
Net earnings
attributable to common stockholders
|
$731
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|
$1,056
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|
$853
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$1,107
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|
$783
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$(52)
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(6.6)%
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|
$3,747
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|
$2,790
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|
$957
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34.3%
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COMMON SHARE
STATISTICS
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Basic
EPS
|
$1.15
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|
$1.60
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$1.25
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|
$1.57
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|
$1.09
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|
$0.06
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5.5%
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|
$5.59
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|
$3.76
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|
$1.83
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48.7%
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Diluted
EPS
|
$1.15
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$1.60
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|
$1.24
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|
$1.56
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|
$1.09
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|
$0.06
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5.5%
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|
$5.56
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|
$3.74
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|
$1.82
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48.7%
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Dividend declared per
share
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$0.22
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$0.22
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$0.21
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$0.21
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|
$0.21
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$0.01
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4.8%
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$0.86
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$0.72
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$0.14
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19.4%
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Common stock
price
|
$36.01
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|
$34.09
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|
$34.67
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$31.90
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$23.46
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$12.55
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53.5%
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$36.01
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$23.46
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$12.55
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53.5%
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Book value per
share
|
$23.31
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$23.13
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$22.03
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$21.35
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$20.42
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$2.89
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14.2%
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$23.31
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$20.42
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$2.89
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14.2%
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Tangible common
equity per share(1)
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$19.50
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$19.68
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$18.60
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$17.96
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$17.41
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$2.09
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12.0%
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$19.50
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$17.41
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$2.09
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12.0%
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Beginning common
shares outstanding
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653.7
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668.9
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688.8
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718.8
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718.7
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(65.0)
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(9.0)%
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718.8
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770.5
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(51.7)
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(6.7)%
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Issuance of common
shares
|
-
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-
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-
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-
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-
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-
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- %
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-
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-
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-
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- %
|
Stock-based
compensation
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0.6
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0.4
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|
1.2
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|
0.9
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|
0.1
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0.5
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NM
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|
3.1
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|
3.0
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0.1
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3.3%
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Shares
repurchased
|
(38.4)
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(15.6)
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|
(21.1)
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(30.9)
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-
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(38.4)
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NM
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|
(106.0)
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|
(54.7)
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(51.3)
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93.8%
|
Ending common shares
outstanding
|
615.9
|
|
653.7
|
|
668.9
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|
688.8
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|
718.8
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(102.9)
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(14.3)%
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|
615.9
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|
718.8
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|
(102.9)
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(14.3)%
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|
|
|
|
|
|
|
|
|
|
|
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|
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|
|
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|
Weighted average
common shares outstanding
|
633.7
|
|
658.3
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|
683.6
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|
706.3
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|
718.7
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|
(85.0)
|
(11.8)%
|
|
670.2
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|
742.3
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(72.1)
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(9.7)%
|
Weighted average
common shares outstanding (fully diluted)
|
637.7
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|
661.7
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|
686.5
|
|
708.9
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|
720.9
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(83.2)
|
(11.5)%
|
|
673.5
|
|
746.9
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|
(73.4)
|
(9.8)%
|
|
|
|
|
|
|
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(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.
|
SYNCHRONY
FINANCIAL
|
|
|
|
|
|
|
|
|
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|
SELECTED
METRICS
|
|
|
|
|
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|
(unaudited, $ in
millions, except account data)
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
|
Twelve Months
Ended
|
|
|
|
|
Dec 31,
2019
|
|
Sep 30,
2019
|
|
Jun 30,
2019
|
|
Mar 31,
2019
|
|
Dec 31,
2018
|
|
4Q'19 vs.
4Q'18
|
|
Dec 31,
2019
|
|
Dec 31,
2018
|
|
YTD'19 vs.
YTD'18
|
PERFORMANCE
METRICS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
Return on
assets(1)
|
2.7%
|
|
3.9%
|
|
3.3%
|
|
4.3%
|
|
2.9%
|
|
|
(0.2)%
|
|
3.5%
|
|
2.8%
|
|
|
0.7%
|
Return on
equity(2)
|
19.0%
|
|
28.3%
|
|
23.1%
|
|
30.4%
|
|
21.5%
|
|
|
(2.5)%
|
|
25.1%
|
|
19.4%
|
|
|
5.7%
|
Return on tangible
common equity(3)
|
23.0%
|
|
33.4%
|
|
27.4%
|
|
35.8%
|
|
25.2%
|
|
|
(2.2)%
|
|
29.9%
|
|
22.4%
|
|
|
7.5%
|
Net interest
margin(4)
|
15.01%
|
|
16.29%
|
|
15.75%
|
|
16.08%
|
|
16.06%
|
|
|
(1.05)%
|
|
15.78%
|
|
15.97%
|
|
|
(0.19)%
|
Efficiency
ratio(5)
|
34.8%
|
|
30.8%
|
|
31.3%
|
|
31.0%
|
|
30.4%
|
|
|
4.4%
|
|
31.9%
|
|
30.8%
|
|
|
1.1%
|
Other expense as a %
of average loan receivables, including held for sale
|
5.01%
|
|
4.66%
|
|
4.78%
|
|
4.71%
|
|
4.79%
|
|
|
0.22%
|
|
4.79%
|
|
4.92%
|
|
|
(0.13)%
|
Effective income tax
rate
|
20.6%
|
|
23.2%
|
|
24.4%
|
|
24.3%
|
|
22.6%
|
|
|
(2.0)%
|
|
23.3%
|
|
23.4%
|
|
|
(0.1)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CREDIT QUALITY
METRICS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs as a
% of average loan receivables, including held for sale
|
5.15%
|
|
5.35%
|
|
6.01%
|
|
6.06%
|
|
5.54%
|
|
|
(0.39)%
|
|
5.65%
|
|
5.63%
|
|
|
0.02%
|
30+ days past due as
a % of period-end loan receivables(6)
|
4.44%
|
|
4.47%
|
|
4.43%
|
|
4.92%
|
|
4.76%
|
|
|
(0.32)%
|
|
4.44%
|
|
4.76%
|
|
|
(0.32)%
|
90+ days past due as
a % of period-end loan receivables(6)
|
2.15%
|
|
2.07%
|
|
2.16%
|
|
2.51%
|
|
2.29%
|
|
|
(0.14)%
|
|
2.15%
|
|
2.29%
|
|
|
(0.14)%
|
Net
charge-offs
|
$1,109
|
|
$1,221
|
|
$1,331
|
|
$1,344
|
|
$1,248
|
|
$(139)
|
(11.1)%
|
|
$5,005
|
|
$4,692
|
|
$313
|
6.7%
|
Loan receivables
delinquent over 30 days(6)
|
$3,874
|
|
$3,723
|
|
$3,625
|
|
$3,957
|
|
$4,430
|
|
$(556)
|
(12.6)%
|
|
$3,874
|
|
$4,430
|
|
$(556)
|
(12.6)%
|
Loan receivables
delinquent over 90 days(6)
|
$1,877
|
|
$1,723
|
|
$1,768
|
|
$2,019
|
|
$2,135
|
|
$(258)
|
(12.1)%
|
|
$1,877
|
|
$2,135
|
|
$(258)
|
(12.1)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses (period-end)
|
$5,602
|
|
$5,607
|
|
$5,809
|
|
$5,942
|
|
$6,427
|
|
$(825)
|
(12.8)%
|
|
$5,602
|
|
$6,427
|
|
$(825)
|
(12.8)%
|
Allowance coverage
ratio(7)
|
6.42%
|
|
6.74%
|
|
7.10%
|
|
7.39%
|
|
6.90%
|
|
|
(0.48)%
|
|
6.42%
|
|
6.90%
|
|
|
(0.48)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BUSINESS
METRICS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase
volume(8)(9)
|
$40,212
|
|
$38,395
|
|
$38,291
|
|
$32,513
|
|
$40,320
|
|
$(108)
|
(0.3)%
|
|
$149,411
|
|
$140,657
|
|
$8,754
|
6.2%
|
Period-end loan
receivables
|
$87,215
|
|
$83,207
|
|
$81,796
|
|
$80,405
|
|
$93,139
|
|
$(5,924)
|
(6.4)%
|
|
$87,215
|
|
$93,139
|
|
$(5,924)
|
(6.4)%
|
Credit
cards
|
$84,606
|
|
$79,788
|
|
$78,446
|
|
$77,251
|
|
$89,994
|
|
$(5,388)
|
(6.0)%
|
|
$84,606
|
|
$89,994
|
|
$(5,388)
|
(6.0)%
|
Consumer installment
loans
|
$1,347
|
|
$2,050
|
|
$1,983
|
|
$1,860
|
|
$1,845
|
|
$(498)
|
(27.0)%
|
|
$1,347
|
|
$1,845
|
|
$(498)
|
(27.0)%
|
Commercial credit
products
|
$1,223
|
|
$1,317
|
|
$1,328
|
|
$1,256
|
|
$1,260
|
|
$(37)
|
(2.9)%
|
|
$1,223
|
|
$1,260
|
|
$(37)
|
(2.9)%
|
Other
|
$39
|
|
$52
|
|
$39
|
|
$38
|
|
$40
|
|
$(1)
|
(2.5)%
|
|
$39
|
|
$40
|
|
$(1)
|
(2.5)%
|
Average loan
receivables, including held for sale
|
$85,376
|
|
$90,556
|
|
$88,792
|
|
$89,903
|
|
$89,340
|
|
$(3,964)
|
(4.4)%
|
|
$88,649
|
|
$83,304
|
|
$5,345
|
6.4%
|
Period-end active
accounts (in thousands)(9)(10)
|
75,471
|
|
77,094
|
|
76,065
|
|
74,812
|
|
80,339
|
|
(4,868)
|
(6.1)%
|
|
75,471
|
|
80,339
|
|
(4,868)
|
(6.1)%
|
Average active
accounts (in thousands)(9)(10)
|
73,734
|
|
76,695
|
|
75,525
|
|
77,132
|
|
77,382
|
|
(3,648)
|
(4.7)%
|
|
75,721
|
|
73,847
|
|
1,874
|
2.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIQUIDITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquid
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and
equivalents
|
$12,147
|
|
$11,461
|
|
$11,755
|
|
$12,963
|
|
$9,396
|
|
$2,751
|
29.3%
|
|
$12,147
|
|
$9,396
|
|
$2,751
|
29.3%
|
Total liquid
assets
|
$17,322
|
|
$15,201
|
|
$16,665
|
|
$17,360
|
|
$14,822
|
|
$2,500
|
16.9%
|
|
$17,322
|
|
$14,822
|
|
$2,500
|
16.9%
|
Undrawn credit
facilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Undrawn credit
facilities
|
$6,050
|
|
$6,500
|
|
$7,050
|
|
$6,050
|
|
$4,375
|
|
$1,675
|
38.3%
|
|
$6,050
|
|
$4,375
|
|
$1,675
|
38.3%
|
Total liquid
assets and undrawn credit facilities
|
$23,372
|
|
$21,701
|
|
$23,715
|
|
$23,410
|
|
$19,197
|
|
$4,175
|
21.7%
|
|
$23,372
|
|
$19,197
|
|
$4,175
|
21.7%
|
Liquid assets % of
total assets
|
16.52%
|
|
14.35%
|
|
15.66%
|
|
16.47%
|
|
13.88%
|
|
|
2.64%
|
|
16.52%
|
|
13.88%
|
|
|
2.64%
|
Liquid assets
including undrawn credit facilities % of total assets
|
22.30%
|
|
20.48%
|
|
22.29%
|
|
22.21%
|
|
17.98%
|
|
|
4.32%
|
|
22.30%
|
|
17.98%
|
|
|
4.32%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 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 loan 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) Includes activity
and accounts associated with loan receivables held for
sale.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(10) Active accounts
represent credit card or installment loan accounts on which there
has been a purchase, payment or outstanding balance in the current
month.
|
|
|
|
|
|
|
|
|
|
|
SYNCHRONY
FINANCIAL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STATEMENTS OF
EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited, $ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
|
Twelve Months
Ended
|
|
|
|
|
Dec 31,
2019
|
|
Sep 30,
2019
|
|
Jun 30,
2019
|
|
Mar 31,
2019
|
|
Dec 31,
2018
|
|
4Q'19 vs.
4Q'18
|
|
Dec 31,
2019
|
|
Dec 31,
2018
|
|
YTD'19 vs.
YTD'18
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
$4,492
|
|
$4,890
|
|
$4,636
|
|
$4,687
|
|
$4,774
|
|
$(282)
|
(5.9)%
|
|
$18,705
|
|
$17,644
|
|
$1,061
|
6.0%
|
Interest on cash and
investment securities
|
93
|
|
91
|
|
102
|
|
99
|
|
102
|
|
(9)
|
(8.8)%
|
|
385
|
|
344
|
|
41
|
11.9%
|
Total interest
income
|
4,585
|
|
4,981
|
|
4,738
|
|
4,786
|
|
4,876
|
|
(291)
|
(6.0)%
|
|
19,090
|
|
17,988
|
|
1,102
|
6.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
383
|
|
411
|
|
397
|
|
375
|
|
350
|
|
33
|
9.4%
|
|
1,566
|
|
1,186
|
|
380
|
32.0%
|
Interest on
borrowings of consolidated securitization entities
|
80
|
|
88
|
|
90
|
|
100
|
|
104
|
|
(24)
|
(23.1)%
|
|
358
|
|
344
|
|
14
|
4.1%
|
Interest on senior
unsecured notes
|
93
|
|
93
|
|
96
|
|
85
|
|
89
|
|
4
|
4.5%
|
|
367
|
|
340
|
|
27
|
7.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest
expense
|
556
|
|
592
|
|
583
|
|
560
|
|
543
|
|
13
|
2.4%
|
|
2,291
|
|
1,870
|
|
421
|
22.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
4,029
|
|
4,389
|
|
4,155
|
|
4,226
|
|
4,333
|
|
(304)
|
(7.0)%
|
|
16,799
|
|
16,118
|
|
681
|
4.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retailer share
arrangements
|
(1,029)
|
|
(1,016)
|
|
(859)
|
|
(954)
|
|
(855)
|
|
(174)
|
20.4%
|
|
(3,858)
|
|
(3,099)
|
|
(759)
|
24.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan
losses
|
1,104
|
|
1,019
|
|
1,198
|
|
859
|
|
1,452
|
|
(348)
|
(24.0)%
|
|
4,180
|
|
5,545
|
|
(1,365)
|
(24.6)%
|
Net interest income,
after retailer share arrangements and provision for loan
losses
|
1,896
|
|
2,354
|
|
2,098
|
|
2,413
|
|
2,026
|
|
(130)
|
(6.4)%
|
|
8,761
|
|
7,474
|
|
1,287
|
17.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interchange
revenue
|
192
|
|
197
|
|
194
|
|
165
|
|
193
|
|
(1)
|
(0.5)%
|
|
748
|
|
710
|
|
38
|
5.4%
|
Debt cancellation
fees
|
64
|
|
64
|
|
69
|
|
68
|
|
70
|
|
(6)
|
(8.6)%
|
|
265
|
|
267
|
|
(2)
|
(0.7)%
|
Loyalty
programs
|
(181)
|
|
(203)
|
|
(192)
|
|
(167)
|
|
(208)
|
|
27
|
(13.0)%
|
|
(743)
|
|
(751)
|
|
8
|
(1.1)%
|
Other
|
29
|
|
27
|
|
19
|
|
26
|
|
9
|
|
20
|
NM
|
|
101
|
|
39
|
|
62
|
159.0%
|
Total other
income
|
104
|
|
85
|
|
90
|
|
92
|
|
64
|
|
40
|
62.5%
|
|
371
|
|
265
|
|
106
|
40.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
385
|
|
359
|
|
358
|
|
353
|
|
353
|
|
32
|
9.1%
|
|
1,455
|
|
1,427
|
|
28
|
2.0%
|
Professional
fees
|
199
|
|
205
|
|
231
|
|
232
|
|
231
|
|
(32)
|
(13.9)%
|
|
867
|
|
806
|
|
61
|
7.6%
|
Marketing and
business development
|
152
|
|
139
|
|
135
|
|
123
|
|
166
|
|
(14)
|
(8.4)%
|
|
549
|
|
528
|
|
21
|
4.0%
|
Information
processing
|
122
|
|
127
|
|
123
|
|
113
|
|
118
|
|
4
|
3.4%
|
|
485
|
|
426
|
|
59
|
13.8%
|
Other
|
221
|
|
234
|
|
212
|
|
222
|
|
210
|
|
11
|
5.2%
|
|
889
|
|
908
|
|
(19)
|
(2.1)%
|
Total other
expense
|
1,079
|
|
1,064
|
|
1,059
|
|
1,043
|
|
1,078
|
|
1
|
0.1%
|
|
4,245
|
|
4,095
|
|
150
|
3.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before
provision for income taxes
|
921
|
|
1,375
|
|
1,129
|
|
1,462
|
|
1,012
|
|
(91)
|
(9.0)%
|
|
4,887
|
|
3,644
|
|
1,243
|
34.1%
|
Provision for income
taxes
|
190
|
|
319
|
|
276
|
|
355
|
|
229
|
|
(39)
|
(17.0)%
|
|
1,140
|
|
854
|
|
286
|
33.5%
|
Net
earnings
|
$731
|
|
$1,056
|
|
$853
|
|
$1,107
|
|
$783
|
|
$(52)
|
(6.6)%
|
|
$3,747
|
|
$2,790
|
|
$957
|
34.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to common stockholders
|
$731
|
|
$1,056
|
|
$853
|
|
$1,107
|
|
$783
|
|
$(52)
|
(6.6)%
|
|
$3,747
|
|
$2,790
|
|
$957
|
34.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SYNCHRONY
FINANCIAL
|
|
|
|
|
|
|
|
|
|
|
|
|
STATEMENTS OF
FINANCIAL POSITION
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited, $ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
|
Dec 31,
2019
|
|
Sep 30,
2019
|
|
Jun 30,
2019
|
|
Mar 31,
2019
|
|
Dec 31,
2018
|
|
Dec 31, 2019
vs.
Dec 31, 2018
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and
equivalents
|
$12,147
|
|
$11,461
|
|
$11,755
|
|
$12,963
|
|
$9,396
|
|
$2,751
|
29.3%
|
Debt
securities
|
5,911
|
|
4,584
|
|
6,147
|
|
5,506
|
|
6,062
|
|
(151)
|
(2.5)%
|
Loan
receivables:
|
|
|
|
|
|
|
|
|
|
|
|
|
Unsecuritized loans
held for investment
|
58,398
|
|
56,220
|
|
55,178
|
|
54,907
|
|
64,969
|
|
(6,571)
|
(10.1)%
|
Restricted loans of
consolidated securitization entities
|
28,817
|
|
26,987
|
|
26,618
|
|
25,498
|
|
28,170
|
|
647
|
2.3%
|
Total loan
receivables
|
87,215
|
|
83,207
|
|
81,796
|
|
80,405
|
|
93,139
|
|
(5,924)
|
(6.4)%
|
Less: Allowance for
loan losses
|
(5,602)
|
|
(5,607)
|
|
(5,809)
|
|
(5,942)
|
|
(6,427)
|
|
825
|
(12.8)%
|
Loan receivables,
net
|
81,613
|
|
77,600
|
|
75,987
|
|
74,463
|
|
86,712
|
|
(5,099)
|
(5.9)%
|
Loan receivables held
for sale
|
725
|
|
8,182
|
|
8,096
|
|
8,052
|
|
-
|
|
725
|
NM
|
Goodwill
|
1,078
|
|
1,078
|
|
1,078
|
|
1,076
|
|
1,024
|
|
54
|
5.3%
|
Intangible assets,
net
|
1,265
|
|
1,177
|
|
1,215
|
|
1,259
|
|
1,137
|
|
128
|
11.3%
|
Other
assets
|
2,087
|
|
1,861
|
|
2,110
|
|
2,065
|
|
2,461
|
|
(374)
|
(15.2)%
|
Total
assets
|
$104,826
|
|
$105,943
|
|
$106,388
|
|
$105,384
|
|
$106,792
|
|
$(1,966)
|
(1.8)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposit accounts
|
$64,877
|
|
$65,677
|
|
$65,382
|
|
$63,787
|
|
$63,738
|
|
$1,139
|
1.8%
|
Non-interest-bearing
deposit accounts
|
277
|
|
295
|
|
263
|
|
273
|
|
281
|
|
(4)
|
(1.4)%
|
Total
deposits
|
65,154
|
|
65,972
|
|
65,645
|
|
64,060
|
|
64,019
|
|
1,135
|
1.8%
|
Borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings of
consolidated securitization entities
|
10,412
|
|
10,912
|
|
11,941
|
|
12,091
|
|
14,439
|
|
(4,027)
|
(27.9)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior unsecured
notes
|
9,454
|
|
9,451
|
|
9,303
|
|
9,800
|
|
9,557
|
|
(103)
|
(1.1)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
borrowings
|
19,866
|
|
20,363
|
|
21,244
|
|
21,891
|
|
23,996
|
|
(4,130)
|
(17.2)%
|
Accrued expenses and
other liabilities
|
4,718
|
|
4,488
|
|
4,765
|
|
4,724
|
|
4,099
|
|
619
|
15.1%
|
Total
liabilities
|
89,738
|
|
90,823
|
|
91,654
|
|
90,675
|
|
92,114
|
|
(2,376)
|
(2.6)%
|
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
stock
|
734
|
|
-
|
|
-
|
|
-
|
|
-
|
|
734
|
NM
|
Common
stock
|
1
|
|
1
|
|
1
|
|
1
|
|
1
|
|
-
|
- %
|
Additional paid-in
capital
|
9,537
|
|
9,520
|
|
9,500
|
|
9,489
|
|
9,482
|
|
55
|
0.6%
|
Retained
earnings
|
12,117
|
|
11,533
|
|
10,627
|
|
9,939
|
|
8,986
|
|
3,131
|
34.8%
|
Accumulated other
comprehensive income:
|
(58)
|
|
(44)
|
|
(43)
|
|
(56)
|
|
(62)
|
|
4
|
(6.5)%
|
Treasury
stock
|
(7,243)
|
|
(5,890)
|
|
(5,351)
|
|
(4,664)
|
|
(3,729)
|
|
(3,514)
|
94.2%
|
Total
equity
|
15,088
|
|
15,120
|
|
14,734
|
|
14,709
|
|
14,678
|
|
410
|
2.8%
|
Total liabilities and
equity
|
$104,826
|
|
$105,943
|
|
$106,388
|
|
$105,384
|
|
$106,792
|
|
$(1,966)
|
(1.8)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SYNCHRONY
FINANCIAL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCES,
NET INTEREST INCOME AND NET INTEREST MARGIN
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited, $ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Dec 31,
2019
|
|
Sep 30,
2019
|
|
Jun 30,
2019
|
|
Mar 31,
2019
|
|
Dec 31,
2018
|
|
|
|
Interest
|
|
Average
|
|
|
|
Interest
|
|
Average
|
|
|
|
Interest
|
|
Average
|
|
|
|
Interest
|
|
Average
|
|
|
|
Interest
|
|
Average
|
|
Average
|
|
Income/
|
|
Yield/
|
|
Average
|
|
Income/
|
|
Yield/
|
|
Average
|
|
Income/
|
|
Yield/
|
|
Average
|
|
Income/
|
|
Yield/
|
|
Average
|
|
Income/
|
|
Yield/
|
|
Balance
|
|
Expense
|
|
Rate
|
|
Balance
|
|
Expense
|
|
Rate
|
|
Balance
|
|
Expense
|
|
Rate
|
|
Balance
|
|
Expense
|
|
Rate
|
|
Balance
|
|
Expense
|
|
Rate
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning cash
and equivalents
|
$16,269
|
|
$68
|
|
1.66%
|
|
$10,947
|
|
$59
|
|
2.14%
|
|
$10,989
|
|
$66
|
|
2.41%
|
|
$11,033
|
|
$65
|
|
2.39%
|
|
$10,856
|
|
$62
|
|
2.27%
|
Securities available
for sale
|
4,828
|
|
25
|
|
2.05%
|
|
5,389
|
|
32
|
|
2.36%
|
|
6,010
|
|
36
|
|
2.40%
|
|
5,640
|
|
34
|
|
2.44%
|
|
6,837
|
|
40
|
|
2.32%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan receivables,
including held for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit
cards
|
81,960
|
|
4,409
|
|
21.34%
|
|
87,156
|
|
4,807
|
|
21.88%
|
|
85,488
|
|
4,557
|
|
21.38%
|
|
86,768
|
|
4,611
|
|
21.55%
|
|
86,131
|
|
4,695
|
|
21.63%
|
Consumer installment
loans
|
2,058
|
|
48
|
|
9.25%
|
|
2,022
|
|
48
|
|
9.42%
|
|
1,924
|
|
44
|
|
9.17%
|
|
1,844
|
|
42
|
|
9.24%
|
|
1,815
|
|
42
|
|
9.18%
|
Commercial credit
products
|
1,311
|
|
34
|
|
10.29%
|
|
1,329
|
|
35
|
|
10.45%
|
|
1,330
|
|
34
|
|
10.25%
|
|
1,252
|
|
34
|
|
11.01%
|
|
1,344
|
|
37
|
|
10.92%
|
Other
|
47
|
|
1
|
|
NM
|
|
49
|
|
-
|
|
- %
|
|
50
|
|
1
|
|
NM
|
|
39
|
|
-
|
|
- %
|
|
50
|
|
-
|
|
- %
|
Total loan
receivables, including held for sale
|
85,376
|
|
4,492
|
|
20.87%
|
|
90,556
|
|
4,890
|
|
21.42%
|
|
88,792
|
|
4,636
|
|
20.94%
|
|
89,903
|
|
4,687
|
|
21.14%
|
|
89,340
|
|
4,774
|
|
21.20%
|
Total
interest-earning assets
|
106,473
|
|
4,585
|
|
17.08%
|
|
106,892
|
|
4,981
|
|
18.49%
|
|
105,791
|
|
4,738
|
|
17.96%
|
|
106,576
|
|
4,786
|
|
18.21%
|
|
107,033
|
|
4,876
|
|
18.07%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
1,326
|
|
|
|
|
|
1,374
|
|
|
|
|
|
1,271
|
|
|
|
|
|
1,335
|
|
|
|
|
|
1,320
|
|
|
|
|
Allowance for loan
losses
|
(5,593)
|
|
|
|
|
|
(5,773)
|
|
|
|
|
|
(5,911)
|
|
|
|
|
|
(6,341)
|
|
|
|
|
|
(6,259)
|
|
|
|
|
Other
assets
|
3,872
|
|
|
|
|
|
3,920
|
|
|
|
|
|
3,752
|
|
|
|
|
|
3,729
|
|
|
|
|
|
3,688
|
|
|
|
|
Total
non-interest-earning assets
|
(395)
|
|
|
|
|
|
(479)
|
|
|
|
|
|
(888)
|
|
|
|
|
|
(1,277)
|
|
|
|
|
|
(1,251)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$106,078
|
|
|
|
|
|
$106,413
|
|
|
|
|
|
$104,903
|
|
|
|
|
|
$105,299
|
|
|
|
|
|
$105,782
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposit accounts
|
$65,380
|
|
$383
|
|
2.32%
|
|
$65,615
|
|
$411
|
|
2.49%
|
|
$64,226
|
|
$397
|
|
2.48%
|
|
$63,776
|
|
$375
|
|
2.38%
|
|
$62,999
|
|
$350
|
|
2.20%
|
Borrowings of
consolidated securitization entities
|
10,831
|
|
80
|
|
2.93%
|
|
11,770
|
|
88
|
|
2.97%
|
|
11,785
|
|
90
|
|
3.06%
|
|
13,407
|
|
100
|
|
3.02%
|
|
14,223
|
|
104
|
|
2.90%
|
Senior unsecured
notes
|
9,452
|
|
93
|
|
3.90%
|
|
9,347
|
|
93
|
|
3.95%
|
|
9,543
|
|
96
|
|
4.03%
|
|
8,892
|
|
85
|
|
3.88%
|
|
9,554
|
|
89
|
|
3.70%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
interest-bearing liabilities
|
85,663
|
|
556
|
|
2.58%
|
|
86,732
|
|
592
|
|
2.71%
|
|
85,554
|
|
583
|
|
2.73%
|
|
86,075
|
|
560
|
|
2.64%
|
|
86,776
|
|
543
|
|
2.48%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
deposit accounts
|
281
|
|
|
|
|
|
283
|
|
|
|
|
|
271
|
|
|
|
|
|
286
|
|
|
|
|
|
284
|
|
|
|
|
Other
liabilities
|
4,906
|
|
|
|
|
|
4,570
|
|
|
|
|
|
4,260
|
|
|
|
|
|
4,148
|
|
|
|
|
|
4,283
|
|
|
|
|
Total
non-interest-bearing liabilities
|
5,187
|
|
|
|
|
|
4,853
|
|
|
|
|
|
4,531
|
|
|
|
|
|
4,434
|
|
|
|
|
|
4,567
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
90,850
|
|
|
|
|
|
91,585
|
|
|
|
|
|
90,085
|
|
|
|
|
|
90,509
|
|
|
|
|
|
91,343
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
equity
|
15,228
|
|
|
|
|
|
14,828
|
|
|
|
|
|
14,818
|
|
|
|
|
|
14,790
|
|
|
|
|
|
14,439
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
and equity
|
$106,078
|
|
|
|
|
|
$106,413
|
|
|
|
|
|
$104,903
|
|
|
|
|
|
$105,299
|
|
|
|
|
|
$105,782
|
|
|
|
|
Net interest
income
|
|
|
$4,029
|
|
|
|
|
|
$4,389
|
|
|
|
|
|
$4,155
|
|
|
|
|
|
$4,226
|
|
|
|
|
|
$4,333
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate
spread(1)
|
|
|
|
|
14.50%
|
|
|
|
|
|
15.78%
|
|
|
|
|
|
15.23%
|
|
|
|
|
|
15.57%
|
|
|
|
|
|
15.59%
|
Net interest
margin(2)
|
|
|
|
|
15.01%
|
|
|
|
|
|
16.29%
|
|
|
|
|
|
15.75%
|
|
|
|
|
|
16.08%
|
|
|
|
|
|
16.06%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Interest rate
spread represents the difference between the yield on total
interest-earning assets and the rate on total interest-bearing
liabilities.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Net interest
margin represents net interest income divided by average
interest-earning assets.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SYNCHRONY
FINANCIAL
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCES,
NET INTEREST INCOME AND NET INTEREST MARGIN
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited, $ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
Dec 31, 2019
|
|
Twelve Months
Ended
Dec 31, 2018
|
|
|
|
Interest
|
|
Average
|
|
|
|
Interest
|
|
Average
|
|
Average
|
|
Income/
|
|
Yield/
|
|
Average
|
|
Income/
|
|
Yield/
|
|
Balance
|
|
Expense
|
|
Rate
|
|
Balance
|
|
Expense
|
|
Rate
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning cash
and equivalents
|
$12,320
|
|
$258
|
|
2.09%
|
|
$11,059
|
|
$207
|
|
1.87%
|
Securities available
for sale
|
5,464
|
|
127
|
|
2.32%
|
|
6,566
|
|
137
|
|
2.09%
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan receivables,
including held for sale:
|
|
|
|
|
|
|
|
|
|
|
|
Credit
cards
|
85,334
|
|
18,384
|
|
21.54%
|
|
80,219
|
|
17,342
|
|
21.62%
|
Consumer installment
loans
|
1,963
|
|
182
|
|
9.27%
|
|
1,698
|
|
156
|
|
9.19%
|
Commercial credit
products
|
1,306
|
|
137
|
|
10.49%
|
|
1,333
|
|
144
|
|
10.80%
|
Other
|
46
|
|
2
|
|
4.35%
|
|
54
|
|
2
|
|
3.70%
|
Total loan
receivables, including held for sale
|
88,649
|
|
18,705
|
|
21.10%
|
|
83,304
|
|
17,644
|
|
21.18%
|
Total
interest-earning assets
|
106,433
|
|
19,090
|
|
17.94%
|
|
100,929
|
|
17,988
|
|
17.82%
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
1,327
|
|
|
|
|
|
1,224
|
|
|
|
|
Allowance for loan
losses
|
(5,902)
|
|
|
|
|
|
(5,900)
|
|
|
|
|
Other
assets
|
3,819
|
|
|
|
|
|
3,315
|
|
|
|
|
Total
non-interest-earning assets
|
(756)
|
|
|
|
|
|
(1,361)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$105,677
|
|
|
|
|
|
$99,568
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposit accounts
|
$64,756
|
|
$1,566
|
|
2.42%
|
|
$59,216
|
|
$1,186
|
|
2.00%
|
Borrowings of
consolidated securitization entities
|
11,941
|
|
358
|
|
3.00%
|
|
12,694
|
|
344
|
|
2.71%
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior unsecured
notes
|
9,310
|
|
367
|
|
3.94%
|
|
9,257
|
|
340
|
|
3.67%
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
interest-bearing liabilities
|
86,007
|
|
2,291
|
|
2.66%
|
|
81,167
|
|
1,870
|
|
2.30%
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
deposit accounts
|
280
|
|
|
|
|
|
282
|
|
|
|
|
Other
liabilities
|
4,473
|
|
|
|
|
|
3,733
|
|
|
|
|
Total
non-interest-bearing liabilities
|
4,753
|
|
|
|
|
|
4,015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
90,760
|
|
|
|
|
|
85,182
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
Total
equity
|
14,917
|
|
|
|
|
|
14,386
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
and equity
|
$105,677
|
|
|
|
|
|
$99,568
|
|
|
|
|
Net interest
income
|
|
|
$16,799
|
|
|
|
|
|
$16,118
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate
spread(1)
|
|
|
|
|
15.28%
|
|
|
|
|
|
15.52%
|
Net interest
margin(2)
|
|
|
|
|
15.78%
|
|
|
|
|
|
15.97%
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Interest rate
spread represents the difference between the yield on total
interest-earning assets and the rate on total interest-bearing
liabilities.
|
|
(2) Net interest
margin represents net interest income divided by average
interest-earning assets.
|
|
|
|
|
|
|
|
|
SYNCHRONY
FINANCIAL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE SHEET
STATISTICS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited, $ in
millions, except per share statistics)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
|
|
Dec 31,
2019
|
|
Sep 30,
2019
|
|
Jun 30,
2019
|
|
Mar 31,
2019
|
|
Dec 31,
2018
|
|
Dec 31, 2019
vs.
Dec 31, 2018
|
|
BALANCE SHEET
STATISTICS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total common
equity
|
$14,354
|
|
$15,120
|
|
$14,734
|
|
$14,709
|
|
$14,678
|
|
($324)
|
(2.2)%
|
|
Total common equity
as a % of total assets
|
13.69%
|
|
14.27%
|
|
13.85%
|
|
13.96%
|
|
13.74%
|
|
|
(0.05)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible
assets
|
$102,483
|
|
$103,688
|
|
$104,095
|
|
$103,049
|
|
$104,631
|
|
$(2,148)
|
(2.1)%
|
|
Tangible common
equity(1)
|
$12,011
|
|
$12,865
|
|
$12,441
|
|
$12,374
|
|
$12,517
|
|
($506)
|
(4.0)%
|
|
Tangible common
equity as a % of tangible assets(1)
|
11.72%
|
|
12.41%
|
|
11.95%
|
|
12.01%
|
|
11.96%
|
|
|
(0.24)%
|
|
Tangible common
equity per share(1)
|
$19.50
|
|
$19.68
|
|
$18.60
|
|
$17.96
|
|
$17.41
|
|
$2.09
|
12.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REGULATORY CAPITAL
RATIOS(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basel III Fully
Phased-in
|
|
|
|
Total risk-based
capital ratio(3)
|
16.3%
|
|
15.8%
|
|
15.6%
|
|
15.8%
|
|
15.3%
|
|
|
|
|
Tier 1 risk-based
capital ratio(4)
|
15.0%
|
|
14.5%
|
|
14.3%
|
|
14.5%
|
|
14.0%
|
|
|
|
|
Tier 1 leverage
ratio(5)
|
12.6%
|
|
12.6%
|
|
12.4%
|
|
12.3%
|
|
12.3%
|
|
|
|
|
Common equity Tier 1
capital ratio
|
14.1%
|
|
14.5%
|
|
14.3%
|
|
14.5%
|
|
14.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Tangible common
equity ("TCE") is a non-GAAP measure. We believe TCE is a more
meaningful measure of the net asset value of the Company to
investors. For corresponding
reconciliation of TCE to a GAAP financial measure, see
Reconciliation of Non-GAAP Measures and Calculations of Regulatory
Measures.
|
|
(2) Regulatory
capital metrics at December 31, 2019 are preliminary and therefore
subject to change.
|
|
(3) Total risk-based
capital ratio is the ratio of total risk-based capital divided by
risk-weighted assets.
|
|
|
|
|
|
|
|
|
(4) Tier 1 risk-based
capital ratio is the ratio of Tier 1 capital divided by
risk-weighted assets.
|
|
|
|
|
|
|
|
|
|
|
(5) Tier 1 leverage
ratio is the ratio of Tier 1 capital divided by total average
assets, after certain adjustments. Tier 1 leverage ratios are based
upon the use of daily averages for all periods
presented.
|
|
|
|
|
|
SYNCHRONY
FINANCIAL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PLATFORM
RESULTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited, $ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
|
Twelve Months
Ended
|
|
|
|
|
|
Dec 31,
2019
|
|
Sep 30,
2019
|
|
Jun 30,
2019
|
|
Mar 31,
2019
|
|
Dec 31,
2018
|
|
4Q'19 vs.
4Q'18
|
|
Dec 31,
2019
|
|
Dec 31,
2018
|
|
YTD'19 vs.
YTD'18
|
|
RETAIL
CARD(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase
volume(2)(3)
|
$30,968
|
|
$29,282
|
|
$29,530
|
|
$24,660
|
|
$31,755
|
|
$(787)
|
(2.5)%
|
|
$114,440
|
|
$107,685
|
|
$6,755
|
6.3%
|
|
Period-end loan
receivables
|
$56,387
|
|
$52,697
|
|
$52,307
|
|
$51,572
|
|
$63,827
|
|
$(7,440)
|
(11.7)%
|
|
$56,387
|
|
$63,827
|
|
$(7,440)
|
(11.7)%
|
|
Average loan
receivables, including held for sale
|
$54,505
|
|
$60,660
|
|
$59,861
|
|
$60,964
|
|
$60,604
|
|
$(6,099)
|
(10.1)%
|
|
$58,984
|
|
$55,739
|
|
$3,245
|
5.8%
|
|
Average active
accounts (in thousands)(3)(4)
|
54,662
|
|
58,082
|
|
57,212
|
|
58,632
|
|
58,962
|
|
(4,300)
|
(7.3)%
|
|
57,073
|
|
55,828
|
|
1,245
|
2.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
$3,143
|
|
$3,570
|
|
$3,390
|
|
$3,454
|
|
$3,502
|
|
$(359)
|
(10.3)%
|
|
$13,557
|
|
$12,815
|
|
$742
|
5.8%
|
|
Other
income
|
$77
|
|
$65
|
|
$59
|
|
$76
|
|
$59
|
|
$18
|
30.5%
|
|
$277
|
|
$239
|
|
$38
|
15.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retailer share
arrangements
|
$(988)
|
|
$(998)
|
|
$(836)
|
|
$(940)
|
|
$(825)
|
|
$(163)
|
19.8%
|
|
$(3,762)
|
|
$(3,014)
|
|
$(748)
|
24.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PAYMENT
SOLUTIONS(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase
volume(2)(3)
|
$6,402
|
|
$6,281
|
|
$5,948
|
|
$5,249
|
|
$6,035
|
|
$367
|
6.1%
|
|
$23,880
|
|
$22,808
|
|
$1,072
|
4.7%
|
|
Period-end loan
receivables
|
$20,528
|
|
$20,478
|
|
$19,766
|
|
$19,379
|
|
$19,815
|
|
$713
|
3.6%
|
|
$20,528
|
|
$19,815
|
|
$713
|
3.6%
|
|
Average loan
receivables, including held for sale
|
$20,701
|
|
$20,051
|
|
$19,409
|
|
$19,497
|
|
$19,333
|
|
$1,368
|
7.1%
|
|
$19,918
|
|
$18,509
|
|
$1,409
|
7.6%
|
|
Average active
accounts (in thousands)(3)(4)
|
12,713
|
|
12,384
|
|
12,227
|
|
12,406
|
|
12,350
|
|
363
|
2.9%
|
|
12,451
|
|
12,087
|
|
364
|
3.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
$737
|
|
$721
|
|
$685
|
|
$686
|
|
$708
|
|
$29
|
4.1%
|
|
$2,829
|
|
$2,678
|
|
$151
|
5.6%
|
|
Other
income
|
$4
|
|
$(1)
|
|
$11
|
|
$1
|
|
$(2)
|
|
$6
|
NM
|
|
$15
|
|
$(8)
|
|
$23
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retailer share
arrangements
|
$(37)
|
|
$(15)
|
|
$(21)
|
|
$(12)
|
|
$(25)
|
|
$(12)
|
48.0%
|
|
$(85)
|
|
$(73)
|
|
$(12)
|
16.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CARECREDIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase
volume(2)
|
$2,842
|
|
$2,832
|
|
$2,813
|
|
$2,604
|
|
$2,530
|
|
$312
|
12.3%
|
|
$11,091
|
|
$10,164
|
|
$927
|
9.1%
|
|
Period-end loan
receivables
|
$10,300
|
|
$10,032
|
|
$9,723
|
|
$9,454
|
|
$9,497
|
|
$803
|
8.5%
|
|
$10,300
|
|
$9,497
|
|
$803
|
8.5%
|
|
Average loan
receivables, including held for sale
|
$10,170
|
|
$9,845
|
|
$9,522
|
|
$9,442
|
|
$9,403
|
|
$767
|
8.2%
|
|
$9,747
|
|
$9,056
|
|
$691
|
7.6%
|
|
Average active
accounts (in thousands)(4)
|
6,359
|
|
6,229
|
|
6,086
|
|
6,094
|
|
6,070
|
|
289
|
4.8%
|
|
6,197
|
|
5,932
|
|
265
|
4.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
$612
|
|
$599
|
|
$561
|
|
$547
|
|
$564
|
|
$48
|
8.5%
|
|
$2,319
|
|
$2,151
|
|
$168
|
7.8%
|
|
Other
income
|
$23
|
|
$21
|
|
$20
|
|
$15
|
|
$7
|
|
$16
|
NM
|
|
$79
|
|
$34
|
|
$45
|
132.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retailer share
arrangements
|
$(4)
|
|
$(3)
|
|
$(2)
|
|
$(2)
|
|
$(5)
|
|
$1
|
(20.0)%
|
|
$(11)
|
|
$(12)
|
|
$1
|
(8.3)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
SYF
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase
volume(2)(3)
|
$40,212
|
|
$38,395
|
|
$38,291
|
|
$32,513
|
|
$40,320
|
|
$(108)
|
(0.3)%
|
|
$149,411
|
|
$140,657
|
|
$8,754
|
6.2%
|
|
Period-end loan
receivables
|
$87,215
|
|
$83,207
|
|
$81,796
|
|
$80,405
|
|
$93,139
|
|
$(5,924)
|
(6.4)%
|
|
$87,215
|
|
$93,139
|
|
$(5,924)
|
(6.4)%
|
|
Average loan
receivables, including held for sale
|
$85,376
|
|
$90,556
|
|
$88,792
|
|
$89,903
|
|
$89,340
|
|
$(3,964)
|
(4.4)%
|
|
$88,649
|
|
$83,304
|
|
$5,345
|
6.4%
|
|
Average active
accounts (in thousands)(3)(4)
|
73,734
|
|
76,695
|
|
75,525
|
|
77,132
|
|
77,382
|
|
(3,648)
|
(4.7)%
|
|
75,721
|
|
73,847
|
|
1,874
|
2.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
$4,492
|
|
$4,890
|
|
$4,636
|
|
$4,687
|
|
$4,774
|
|
$(282)
|
(5.9)%
|
|
$18,705
|
|
$17,644
|
|
$1,061
|
6.0%
|
|
Other
income
|
$104
|
|
$85
|
|
$90
|
|
$92
|
|
$64
|
|
$40
|
62.5%
|
|
$371
|
|
$265
|
|
$106
|
40.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retailer share
arrangements
|
$(1,029)
|
|
$(1,016)
|
|
$(859)
|
|
$(954)
|
|
$(855)
|
|
$(174)
|
20.4%
|
|
$(3,858)
|
|
$(3,099)
|
|
$(759)
|
24.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Beginning in 1Q
2019, our Oil and Gas retail credit programs are now included in
our Payment Solutions sales platform. Prior period financial and
operating metrics for Retail Card and Payment Solutions have been
recast to reflect the
current period presentation.
|
|
(2) 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.
|
|
|
|
|
|
|
(3) Includes activity
and balances associated with loan receivables held for
sale.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4) Active accounts
represent credit card or installment loan accounts on which there
has been a purchase, payment or outstanding balance in the current
month.
|
|
SYNCHRONY
FINANCIAL
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
NON-GAAP MEASURES AND CALCULATIONS OF REGULATORY
MEASURES(1)
|
|
|
|
|
|
|
(unaudited, $ in
millions, except per share statistics)
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Dec 31,
2019
|
|
Sep 30,
2019
|
|
Jun 30,
2019
|
|
Mar 31,
2019
|
|
Dec 31,
2018
|
COMMON EQUITY AND
REGULATORY CAPITAL MEASURES
|
|
|
|
|
|
|
|
|
|
GAAP Total
equity
|
$15,088
|
|
$15,120
|
|
$14,734
|
|
$14,709
|
|
$14,678
|
Less: Preferred
stock
|
(734)
|
|
-
|
|
-
|
|
-
|
|
-
|
Less:
Goodwill
|
(1,078)
|
|
(1,078)
|
|
(1,078)
|
|
(1,076)
|
|
(1,024)
|
Less: Intangible
assets, net
|
(1,265)
|
|
(1,177)
|
|
(1,215)
|
|
(1,259)
|
|
(1,137)
|
Tangible common
equity
|
$12,011
|
|
$12,865
|
|
$12,441
|
|
$12,374
|
|
$12,517
|
|
|
|
|
|
|
|
|
|
|
Adjustments for
certain deferred tax liabilities and certain items in
accumulated
comprehensive income (loss)
|
319
|
|
290
|
|
283
|
|
287
|
|
284
|
Basel III - Common
equity Tier 1
|
$12,330
|
|
$13,155
|
|
$12,724
|
|
$12,661
|
|
$12,801
|
Preferred
stock
|
734
|
|
-
|
|
-
|
|
-
|
|
-
|
Basel III - Tier 1
capital
|
$13,064
|
|
$13,155
|
|
$12,724
|
|
$12,661
|
|
$12,801
|
|
|
|
|
|
|
|
|
|
|
Add: Allowance for
loan losses includible in risk-based capital
|
1,147
|
|
1,190
|
|
1,169
|
|
1,152
|
|
1,212
|
Total Risk-based
capital
|
$14,211
|
|
$14,345
|
|
$13,893
|
|
$13,813
|
|
$14,013
|
|
|
|
|
|
|
|
|
|
|
ASSET
MEASURES
|
|
|
|
|
|
|
|
|
|
Total average
assets
|
$106,078
|
|
$106,413
|
|
$104,903
|
|
$105,299
|
|
$105,782
|
Adjustments
for:
|
|
|
|
|
|
|
|
|
|
Disallowed goodwill
and other disallowed intangible assets
(net of related deferred tax liabilities) and other
|
(2,059)
|
|
(1,975)
|
|
(2,003)
|
|
(2,039)
|
|
(1,845)
|
|
|
|
|
|
|
|
|
|
|
Total assets for
leverage purposes
|
$104,019
|
|
$104,438
|
|
$102,900
|
|
$103,260
|
|
$103,937
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk-weighted
assets - Basel III (fully phased-in)
|
$87,302
|
|
$90,772
|
|
$88,890
|
|
$87,331
|
|
$91,742
|
|
|
|
|
|
|
|
|
|
|
CORE PURCHASE
VOLUME
|
|
|
|
|
|
|
|
|
|
Purchase
volume
|
$40,212
|
|
$38,395
|
|
$38,291
|
|
$32,513
|
|
$40,320
|
Less: Walmart and
Yamaha Purchase volume
|
(267)
|
|
(2,381)
|
|
(2,512)
|
|
(2,151)
|
|
(3,028)
|
Core Purchase
volume
|
$39,945
|
|
$36,014
|
|
$35,779
|
|
$30,362
|
|
$37,292
|
|
|
|
|
|
|
|
|
|
|
CORE LOAN
RECEIVABLES
|
|
|
|
|
|
|
|
|
|
Loan
receivables
|
$87,215
|
|
$83,207
|
|
$81,796
|
|
$80,405
|
|
$93,139
|
Less: Walmart and
Yamaha Loan receivables
|
(3)
|
|
(872)
|
|
(1,188)
|
|
(1,420)
|
|
(10,264)
|
Core Loan
receivables
|
$87,212
|
|
$82,335
|
|
$80,608
|
|
$78,985
|
|
$82,875
|
|
|
|
|
|
|
|
|
|
|
Retail Card Loan
receivables(2)
|
$56,387
|
|
$52,697
|
|
$52,307
|
|
$51,572
|
|
$63,827
|
Less: Walmart Loan
receivables
|
-
|
|
(112)
|
|
(431)
|
|
(692)
|
|
(9,519)
|
Core Loan
receivables
|
$56,387
|
|
$52,585
|
|
$51,876
|
|
$50,880
|
|
$54,308
|
|
|
|
|
|
|
|
|
|
|
Payment Solutions
Loan receivables(2)
|
$20,528
|
|
$20,478
|
|
$19,766
|
|
$19,379
|
|
$19,815
|
Less: Yamaha Loan
receivables
|
(3)
|
|
(760)
|
|
(757)
|
|
(728)
|
|
(745)
|
Core Loan
receivables
|
$20,525
|
|
$19,718
|
|
$19,009
|
|
$18,651
|
|
$19,070
|
|
|
|
|
|
|
|
|
|
|
CORE AVERAGE
ACTIVE ACCOUNTS (in thousands)
|
|
|
|
|
|
|
|
|
|
Average active
accounts (in thousands)
|
73,734
|
|
76,695
|
|
75,525
|
|
77,132
|
|
77,382
|
Less: Walmart and
Yamaha Average active accounts (in thousands)
|
(1,777)
|
|
(7,001)
|
|
(7,215)
|
|
(7,618)
|
|
(7,720)
|
Core Average
active accounts (in thousands)
|
$71,957
|
|
$69,694
|
|
$68,310
|
|
$69,514
|
|
$69,662
|
|
|
|
|
|
|
|
|
|
|
CORE INTEREST AND
FEES ON LOANS
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
$4,492
|
|
$4,890
|
|
$4,636
|
|
$4,687
|
|
$4,774
|
Less: Walmart and
Yamaha Interest and fees on loans
|
(69)
|
|
(531)
|
|
(520)
|
|
(549)
|
|
(559)
|
Core Interest and
fees on loans
|
$4,423
|
|
$4,359
|
|
$4,116
|
|
$4,138
|
|
$4,215
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE COMMON
EQUITY PER SHARE
|
|
|
|
|
|
|
|
|
|
GAAP book value per
share
|
$23.31
|
|
$23.13
|
|
$22.03
|
|
$21.35
|
|
$20.42
|
Less:
Goodwill
|
(1.75)
|
|
(1.65)
|
|
(1.61)
|
|
(1.56)
|
|
(1.42)
|
Less: Intangible
assets, net
|
(2.06)
|
|
(1.80)
|
|
(1.82)
|
|
(1.83)
|
|
(1.59)
|
Tangible common
equity per share
|
$19.50
|
|
$19.68
|
|
$18.60
|
|
$17.96
|
|
$17.41
|
|
|
|
|
|
|
|
|
|
|
(1) Regulatory
measures at December 31, 2019 are presented on an estimated
basis.
|
(2) Beginning in 1Q
2019, our Oil and Gas retail credit programs are now included in
our Payment Solutions sales platform. Prior period financial and
operating metrics for Retail Card and Payment Solutions
have been recast to reflect the current period
presentation.
|
Investor
Relations
Greg
Ketron
(203)
585-6291
Media Relations
Sue Bishop
(203) 585-2802
View original content to download
multimedia:http://www.prnewswire.com/news-releases/synchrony-financial-reports-fourth-quarter-net-earnings-of-731-million-or-1-15-per-diluted-share-300992528.html
SOURCE Synchrony