Synchrony’s Resilient Business Model Highlighted in Q1 Performance with the Help of RSAs

Synchrony’s business model has always stood out among our peers – but it’s during times of uncertainty that our approach has truly demonstrated its differentiation.??

?Our risk-adjusted return has consistently trended within an approximate 200 basis point range through changing market conditions since our IPO. Whether operating through periods of credit normalization or the COVID-19 pandemic, Synchrony has delivered resilient risk-adjusted returns thanks, in part, to our Retail Share Arrangements.?

The Power of Retailer Share Arrangements??

Synchrony’s model is powered in part by the adaptability afforded by our Retailer Share Arrangements (RSAs). As the environment evolves, these unique agreements have aligned interests as we make decisions to meet both opportunities and challenges, furthering a winning proposition for both sides.?

When Synchrony provides financing to our partners, we’re empowering more customers to purchase their products and engage with their brand – driving growth for that business and building long-term loyalty. For Synchrony, RSAs have provided stability and predictability when it comes to our returns, which allows us to plan and invest with confidence.??

Investing in the Customer??

With shared economics, we’re able to collaborate with our partners on additional investments in fast and secure underwriting, seamless product integrations and compelling value propositions, for instance – each of which provide a better experience for the customer. As these programs succeed, Synchrony and our partners share in the upside – giving our partners the fuel to further invest in their most loyal customers, while providing Synchrony with the resources to maintain resiliency in our results.??

By diversifying our products, sales platforms and distribution channels, and making additional investments in our tools and technology, we’ve been able to weather storms that have shaken some of our peers.??

We believe our commitment to a resilient business model, combined with the power of RSAs, positions us for continued success through the opportunities and challenges ahead. As we navigate uncertainties, we do so with confidence, knowing our operating model – centered around our partners and our customers – has helped us thrive during evolving environments.??

Optimizing Our Position for the Long-Term?

Synchrony is focused on leveraging our core strengths to optimize our business position and build on our long history of delivering steady growth for our shareholders. Our deep understanding of the customer, coupled with nearly a century of experience informs our go-to-market and product strategies. Our investment in sophisticated credit management tools empower our agility. And our RSA supports our financial resilience. Together, our differentiated model continues to consistently deliver value for each of our stakeholders through changing environments.???

This article, including the financial metrics discussed within, should be read in conjunction with the Company’s first quarter 2024 earnings release, filed on April 24, 2024.???

?This article also 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 Q1 earnings release.?

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