Synchrony’s Strong and Tested Model Delivers in Q2

Synchrony is an incredible company, built on a foundation that’s stood strong for nearly a century. Our partner-focused business model delivers more value for our stakeholders – whether that’s for our partners, consumers, people or shareholders. And that’s as true today as ever. Even amidst a changing macroeconomic environment, Synchrony understands how to drive growth and deliver results, which is something I think you’ll see reflected in our 2023 Q2 performance. Fueled by our?advanced underwriting, capital allocation strategies, and partner-centricity, we’re demonstrating the power of the experience cultivated across decades and through economic cycles.

Today’s Economic Environment

But in order to maintain these consistent returns for shareholders, we must continue to manage our balance sheet prudently. The regulatory backdrop is changing. We’re seeing the impacts of inflation. Interest rates have risen rapidly. For these reasons and others, companies like Synchrony must continue to be intentional and thoughtful in their decision making.

The good news is the consumer is holding up well through this environment, and given our strong position, Synchrony has been able to continue advancing the key strategic priorities of our business, positioning us for long-term success.

Synchrony’s Strong & Tested Business Model

In more than 90 years of doing business, Synchrony has learned how to anticipate the unexpected and make adjustments to meet changing market dynamics. Experience matters, which is why our consistent returns, fueled by a sound and intentional strategy have guided us across decades.

But more specifically to today, I’m especially confident in Synchrony’s multi-product strategy across partners, distribution channels and markets. It allows us to meet our customers how and where they want to be met, while driving our strong performance. Our consumer bank provides balance sheet stability. Case-in-point, we saw positive net flows each week of the second quarter and every week this year. And our Retailer Share Arrangements (RSA) ensure alignment with our longstanding partners in a changing environment. Which, again, demonstrates the resiliency in our results.

We’ve made significant investments in advancing our underwriting technology and taking a data-driven approach to lending.?These tools and data have allowed us to continue to achieve our risk adjusted margin goals and meet our customer’s needs. At the core of our advancements is technology and data so we can deliver to our partners more customers and help them grow their sales.?While using these data driven underwriting tools, we are focused on ensuring we are a responsible and transparent lender.?It is this type of lending which has made Synchrony a Top 20 Great Place to Work and created tremendous engagement with our people. We are incredibly proud of what we have built and what we provide and know our actions are helping to create a more resilient economy.

Delivering Value

In times of financial uncertainty, a pragmatic fiscal management strategy, along with having the right financing options for our partners and consumers is critical. Whether that’s short- and long-term fixed payment offerings, Synchrony Pay Later or traditional revolving credit products, our diversified portfolio allows flexibility and choice for the customer while driving value for our shareholders. Building a company which is resilient and can operate both in good times and turbulent times makes us a more valuable company for all of our stakeholders.

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