Clear Vision and Strong Execution Reflected in Q2 Results

Synchrony 's second quarter results again demonstrate the resilience of our differentiated business model. Understanding our customers—and how to best serve them in today’s dynamic economic and regulatory environment—remains our north star. As a partner to tens of millions of consumers and hundreds of thousands of businesses, we are a leading financial products ecosystem, with a clear focus on driving future growth.??

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Having set our long-term business strategy, we are focused on execution and creating a stronger company for the future. Through this approach we delivered results with loan receivable and revenue growth and strong returns in the second quarter.??

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Driving Sustainable Growth??

Compared to 2Q 2023, ending loan receivables grew 7.9% to $102.3 billion in the second quarter, benefiting from an approximately 80 basis point decrease in payment rate and reflecting growth across each of our sales platforms. Net revenue increased 13% to $3.7 billion, reflecting higher interest and fees, lower RSA and an increase in other income.?

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Bolstering Portfolio Performance???

We continue to closely monitor our portfolio performance, as well as credit trends for the broader industry, to support our ability to deliver targeted risk-adjusted returns over the long term. We believe our ongoing investments in technology, including PRISM, the advanced underwriting platform that allows us to move beyond the traditional credit score, better positions us to navigate the changing landscape.??

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Actions in Response to Potential New CFPB Late Fee Rule Underway??

In preparation for the pending new rule on late fees and our desire to offset the impact on our business as soon as possible, Synchrony has completed the first phase of our product, policy and pricing changes. Most of these actions will begin to go into effect in the second half of 2024. We will continue to track their financial and operational impact on our customers, partners and portfolio, and make refinements as needed to achieve our objectives.?

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Funding Foundation Remains Strong

Consumers continue to respond well to our expanded offerings that reflect their most important needs, contributing to more than $7 billion of deposit growth.???

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Looking Ahead with Optimism?

We continue to be optimistic about the future, even with evolving market conditions. ?This year, Synchrony is celebrating the 10-year anniversary of our IPO.? Over the past decade, we have set and reached multiple goals and milestones, and crafted a clear vision and execution plan. By maintaining our focus on the consumers and businesses who rely on us, we believe we are well-positioned to continue our growth trajectory and drive strong risk-adjusted returns over the long-term.

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The financial detail and other information reported above should be read in conjunction with the Company’s Q2 earnings release, available here. This post includes certain forward-looking statements. We caution you against relying on any forward-looking statements, which speak only as of the date made, and should be read in conjunction with our public filings, including the “Cautionary Statement Regarding Forward-Looking Statements” included in the Company’s Q2 earnings release.