Synchrony Demonstrates Strong Growth and Financial Performance in Q2

In the second quarter, Synchrony delivered strong financial results, including:

• ?Net earnings of $569 million, or $1.32 per diluted share;
• A return on average assets of 2.1%; and
• A return on tangible common equity of 21.7%.

You can read our full results here, but Synchrony continues to demonstrate strong growth and financial performance as consumer behavior reverts to pre-pandemic norms, and as our products and value propositions resonate strongly across our diversified set of platforms and partners.

During the second quarter, we opened 5.9 million new accounts and grew average active accounts by 7% on a core basis. Once again, we set a new record as our $47 billion of purchase volume reached our highest-ever level for a second quarter. These strong sales continue to demonstrate the value of our diversified products and platforms, with 4 out of 5 of our platforms seeing purchase volume growth.

Our view into the consumer, informed by the billions of real-time transactional data that we regularly monitor, shows continued normalization in consumer behavior toward pre-pandemic levels — which has progressed in line with our expectations.?

Meeting Our Consumers Where They Are

And as we continue to closely monitor the health of our customers, we are also advancing the key strategic priorities of our business to position Synchrony for long-term success.

One of those priorities is the continued expansion of our multi-product strategy across partners, distribution channels and markets — allowing us to meet our customers how and where they want to be met, and with a variety of financing solutions that address their specific financing needs in each interaction. As customers' needs change over time, Synchrony can and should be their financing "partner of choice" throughout life's stages. Whether applying in person, online or through an app, we leverage our data and advanced analytics through our digital ecosystem to deliver fast, seamless offers.

Adding More Flexibility With Synchrony’s Buy Now Pay Later Solutions

For customers who appreciate the simplicity of an installment loan, with flexible terms and payment schedules, Synchrony's buy now, pay later solutions have become popular options, and are successfully attracting new accounts and driving deeper engagement. In fact, partners who have launched these products have seen a 29% lift in new accounts, with over 95% of the sales coming from new customers.

These solutions — conveniently integrated into our broader partner relationships and product offerings, and matched with our deep insights into the consumer — clearly expand our reach beyond our traditional set of customers, and offer our partners another effective tool for engaging with their most loyal shoppers.

Most recently, we announced that our partner AtHome selected Synchrony as its exclusive buy now, pay later provider, integrating this installment product with its existing suite of payment options. Customers can select Synchrony Pay Later at checkout — online and in store — and thanks to our integrated data and leading underwriting capabilities, most can be pre-qualified without impacting their credit score.?

Looking Forward

As we head into the second half of 2023, Synchrony is well positioned to broaden our product suite – with new installment products and product upgrades across the business. In turn, we’ll be able to better acquire and deepen relationships with consumers and partners, and reinforce a dependable and resilient model for all of our stakeholders.

After all, Synchrony's differentiated model has positioned the company well through evolving environments. We strive to power best-in-class experiences for our customers and strong outcomes for our partners, even as their needs change. Our business generates strong capital. We are adept at putting that capital to work in an effective, prudent manner to deliver sustainable, longer-term growth at attractive risk-adjusted returns. And as we look ahead to the remainder of this year, I am confident in our ability to execute on our strategic priorities and deliver value to our many stakeholders.