STAMFORD, Conn., April 18, 2019 /PRNewswire/ -- Synchrony
Financial (NYSE: SYF) today announced first quarter 2019 net
earnings of $1.1 billion, or
$1.56 per diluted share; this
includes a $522 million pre-tax,
$395 million after-tax, or
$0.56 per diluted share benefit from
reserves released related to the reclassification of the Walmart
portfolio to loans held for sale during the quarter. Highlights
included*:
- Loan receivables grew 3% to $80.4
billion; excluding the Walmart portfolio from both periods,
loan receivables grew 17% to $79.7
billion
- Net interest income increased 10% to $4.2 billion
- Purchase volume grew 10% to $32.5
billion; and average active accounts grew 8% to 77.1
million
- Deposits grew $7.5 billion, or
13% to $64.1 billion
- Renewed key Payment Solutions relationships with P.C. Richard
& Son, Rheem, and Suzuki
- Expanded networks to create broader acceptance for Synchrony
Car Care and Synchrony HOME in Payment Solutions and through a
partnership with Simplee in CareCredit
- Continued to expand CareCredit product offerings with entry
into pet insurance as managing general agent through the
acquisition of Pets Best
- Paid quarterly common stock dividend of $0.21 per share and repurchased $966 million of Synchrony Financial common
stock
* All comparisons are for the first quarter of 2019 compared
to the first quarter of 2018, unless otherwise noted
"We are maintaining the momentum we generated over the last
several quarters. Our focus on organic growth, program renewals,
valuable strategic partnerships, forward-thinking technology
investments, and actionable data analytics, continue to be key
factors in driving solid growth and strong partnerships," said
Margaret Keane, President and Chief
Executive Officer of Synchrony Financial. "Synchrony's
balance sheet remains strong as we continue to focus on creating
value for shareholders through growth, portfolio acquisitions, and
the execution of our capital plan."
Business and Financial Highlights for the First Quarter of
2019
All comparisons are for the first quarter of 2019 compared to
the first quarter of 2018, unless otherwise noted.
Earnings
- Net interest income increased $384
million, or 10%, to $4.2
billion, primarily driven by the PayPal Credit program
acquisition and loan receivables growth. Net interest income after
retailer share arrangements increased 5%.
- Provision for loan losses decreased $503
million, or 37%, to $859
million, largely driven by the $522
million reserve release related to the reclassification of
the Walmart portfolio to loans held for sale during the
quarter.
- Other income was up $17 million
to $92 million.
- Other expense increased $55
million, or 6%, to $1.0
billion, primarily driven by the PayPal Credit program
acquisition and growth-related expenses.
- Net earnings totaled $1.1 billion
compared to $640 million last
year.
Balance Sheet
- Period-end loan receivables growth was 3%; excluding the
Walmart portfolio from both periods, period-end loan receivables
growth was 17%; purchase volume growth was 10% and average active
accounts increased 8%, primarily driven by the PayPal Credit
program acquisition and growth.
- Deposits grew to $64.1 billion,
up $7.5 billion, or 13%, and
comprised 75% of funding.
- The Company's balance sheet remained strong with total
liquidity (liquid assets and undrawn credit facilities) of
$23.4 billion, or 22.2% of total
assets.
- The estimated fully phased-in Common Equity Tier 1 ratio under
Basel III was 14.5%, compared to 16.8%, reflecting the impact of
capital deployment through the PayPal Credit program acquisition
and continued execution of our capital plan.
Key Financial Metrics
- Return on assets was 4.3% and return on equity was 30.4%.
- Net interest margin was 16.08%.
- Efficiency ratio was 31.0%.
Credit Quality
- Loans 30+ days past due as a percentage of total period-end
loan receivables were 4.92% compared to 4.52% last year; excluding
the PayPal Credit program and the Walmart portfolio, the rate
decreased approximately 10 basis points.
- Net charge-offs as a percentage of total average loan
receivables were 6.06% compared to 6.14% last year; excluding the
PayPal Credit program and the Walmart portfolio, the rate decreased
approximately 30 basis points.
- The allowance for loan losses as a percentage of total
period-end loan receivables was 7.39% compared to 7.37% last
year.
Sales Platforms
- Retail Card period-end loan receivables growth was 1%;
excluding the Walmart portfolio from both periods, period-end loan
receivables growth was 22%; interest and fees on loans increased
15%, purchase volume growth was 11%, and average active accounts
increased 10%, all largely driven by the PayPal Credit program
acquisition.
- Payment Solutions period-end loan receivables grew 8%, led by
home furnishings and luxury products. Interest and fees on loans
increased 7%, primarily driven by the loan receivables growth.
Purchase volume growth was 4% and average active accounts increased
3%.
- CareCredit period-end loan receivables grew 7%, led by dental
and veterinary. Interest and fees on loans increased 6%, primarily
driven by the loan receivables growth. Purchase volume growth was
8% and average active accounts increased 4%.
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
Quarterly Report on Form 10-Q for the quarter ended March 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 Thursday, April 18, 2019, at
8:30 a.m. Eastern Time, Margaret Keane, President and Chief Executive
Officer, and Brian Doubles, 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 12019#, and can be accessed beginning
approximately two hours after the event through May 3, 2019.
About Synchrony Financial
Synchrony Financial (NYSE: SYF) is a premier consumer
financial services company delivering customized financing programs
across key industries including retail, health, auto, travel and
home, along with award-winning consumer banking products. With more
than $140 billion in sales financed
and 80.3 million active accounts, Synchrony Financial brings deep
industry expertise, actionable data insights, innovative solutions
and differentiated digital experiences to improve the success of
every business we serve and the quality of each life we touch. More
information can be found
at www.synchronyfinancial.com and through
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
portfolio, 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.
Investor
Relations
|
Media
Relations
|
|
|
Greg
Ketron
|
Sue Bishop
|
(203)
585-6291
|
(203)
585-2802
|
SYNCHRONY
FINANCIAL
|
FINANCIAL
SUMMARY
|
(unaudited, in
millions, except per share statistics)
|
|
Quarter
Ended
|
|
|
|
Mar 31,
2019
|
|
Dec 31,
2018
|
|
Sep 30,
2018
|
|
Jun 30,
2018
|
|
Mar 31,
2018
|
|
1Q'19 vs.
1Q'18
|
EARNINGS
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$4,226
|
|
$4,333
|
|
$4,206
|
|
$3,737
|
|
$3,842
|
|
$384
|
10.0%
|
Retailer share
arrangements
|
(954)
|
|
(855)
|
|
(871)
|
|
(653)
|
|
(720)
|
|
(234)
|
32.5%
|
Net interest
income, after retailer share arrangements
|
3,272
|
|
3,478
|
|
3,335
|
|
3,084
|
|
3,122
|
|
150
|
4.8%
|
Provision for loan
losses
|
859
|
|
1,452
|
|
1,451
|
|
1,280
|
|
1,362
|
|
(503)
|
(36.9)%
|
Net interest
income, after retailer share arrangements and provision for loan
losses
|
2,413
|
|
2,026
|
|
1,884
|
|
1,804
|
|
1,760
|
|
653
|
37.1%
|
Other
income
|
92
|
|
64
|
|
63
|
|
63
|
|
75
|
|
17
|
22.7%
|
Other
expense
|
1,043
|
|
1,078
|
|
1,054
|
|
975
|
|
988
|
|
55
|
5.6%
|
Earnings before
provision for income taxes
|
1,462
|
|
1,012
|
|
893
|
|
892
|
|
847
|
|
615
|
72.6%
|
Provision for income
taxes
|
355
|
|
229
|
|
222
|
|
196
|
|
207
|
|
148
|
71.5%
|
Net
earnings
|
$1,107
|
|
$783
|
|
$671
|
|
$696
|
|
$640
|
|
$467
|
73.0%
|
Net earnings
attributable to common stockholders
|
$1,107
|
|
$783
|
|
$671
|
|
$696
|
|
$640
|
|
$467
|
73.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMON SHARE
STATISTICS
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
EPS
|
$1.57
|
|
$1.09
|
|
$0.91
|
|
$0.93
|
|
$0.84
|
|
$0.73
|
86.9%
|
Diluted
EPS
|
$1.56
|
|
$1.09
|
|
$0.91
|
|
$0.92
|
|
$0.83
|
|
$0.73
|
88.0%
|
Dividend declared per
share
|
$0.21
|
|
$0.21
|
|
$0.21
|
|
$0.15
|
|
$0.15
|
|
$0.06
|
40.0%
|
Common stock
price
|
$31.90
|
|
$23.46
|
|
$31.08
|
|
$33.38
|
|
$33.53
|
|
$(1.63)
|
(4.9)%
|
Book value per
share
|
$21.35
|
|
$20.42
|
|
$19.47
|
|
$19.37
|
|
$18.88
|
|
$2.47
|
13.1%
|
Tangible common
equity per share(1)
|
$17.96
|
|
$17.41
|
|
$16.51
|
|
$16.84
|
|
$16.55
|
|
$1.41
|
8.5%
|
Beginning common
shares outstanding
|
718.8
|
|
718.7
|
|
746.6
|
|
760.3
|
|
770.5
|
|
(51.7)
|
(6.7)%
|
Issuance of common
shares
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
- %
|
Stock-based
compensation
|
0.9
|
|
0.1
|
|
2.4
|
|
0.3
|
|
0.2
|
|
0.7
|
NM
|
Shares
repurchased
|
(30.9)
|
|
-
|
|
(30.3)
|
|
(14.0)
|
|
(10.4)
|
|
(20.5)
|
197.1%
|
Ending common shares
outstanding
|
688.8
|
|
718.8
|
|
718.7
|
|
746.6
|
|
760.3
|
|
(71.5)
|
(9.4)%
|
Weighted average
common shares outstanding
|
706.3
|
|
718.7
|
|
734.9
|
|
752.2
|
|
763.7
|
|
(57.4)
|
(7.5)%
|
Weighted average
common shares outstanding (fully diluted)
|
708.9
|
|
720.9
|
|
738.8
|
|
758.3
|
|
770.3
|
|
(61.4)
|
(8.0)%
|
|
(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
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED
METRICS
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited, $ in
millions, except account data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
|
|
Mar 31,
2019
|
|
Dec 31,
2018
|
|
Sep 30,
2018
|
|
Jun 30,
2018
|
|
Mar 31,
2018
|
|
1Q'19 vs.
1Q'18
|
PERFORMANCE
METRICS
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
assets(1)
|
4.3%
|
|
2.9%
|
|
2.7%
|
|
2.9%
|
|
2.7%
|
|
|
1.6%
|
Return on
equity(2)
|
30.4%
|
|
21.5%
|
|
18.5%
|
|
19.4%
|
|
18.2%
|
|
|
12.2%
|
Return on tangible
common equity(3)
|
35.8%
|
|
25.2%
|
|
21.5%
|
|
22.1%
|
|
20.7%
|
|
|
15.1%
|
Net interest
margin(4)
|
16.08%
|
|
16.06%
|
|
16.41%
|
|
15.33%
|
|
16.05%
|
|
|
0.03%
|
Efficiency
ratio(5)
|
31.0%
|
|
30.4%
|
|
31.0%
|
|
31.0%
|
|
30.9%
|
|
|
0.1%
|
Other expense as a %
of average loan receivables, including held for sale
|
4.71%
|
|
4.79%
|
|
4.82%
|
|
5.02%
|
|
5.07%
|
|
|
(0.36)%
|
Effective income tax
rate
|
24.3%
|
|
22.6%
|
|
24.9%
|
|
22.0%
|
|
24.4%
|
|
|
(0.1)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CREDIT QUALITY
METRICS
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs as a
% of average loan receivables, including held for sale
|
6.06%
|
|
5.54%
|
|
4.97%
|
|
5.97%
|
|
6.14%
|
|
|
(0.08)%
|
30+ days past due as
a % of period-end loan receivables(6)
|
4.92%
|
|
4.76%
|
|
4.59%
|
|
4.17%
|
|
4.52%
|
|
|
0.40%
|
90+ days past due as
a % of period-end loan receivables(6)
|
2.51%
|
|
2.29%
|
|
2.09%
|
|
1.98%
|
|
2.28%
|
|
|
0.23%
|
Net
charge-offs
|
$1,344
|
|
$1,248
|
|
$1,087
|
|
$1,159
|
|
$1,198
|
|
$146
|
12.2%
|
Loan receivables
delinquent over 30 days(6)
|
$3,957
|
|
$4,430
|
|
$4,021
|
|
$3,293
|
|
$3,521
|
|
$436
|
12.4%
|
Loan receivables
delinquent over 90 days(6)
|
$2,019
|
|
$2,135
|
|
$1,833
|
|
$1,561
|
|
$1,776
|
|
$243
|
13.7%
|
Allowance for loan
losses (period-end)
|
$5,942
|
|
$6,427
|
|
$6,223
|
|
$5,859
|
|
$5,738
|
|
$204
|
3.6%
|
Allowance coverage
ratio(7)
|
7.39%
|
|
6.90%
|
|
7.11%
|
|
7.43%
|
|
7.37%
|
|
|
0.02%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BUSINESS
METRICS
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase
volume(8)(9)
|
$32,513
|
|
$40,320
|
|
$36,443
|
|
$34,268
|
|
$29,626
|
|
$2,887
|
9.7%
|
Period-end loan
receivables
|
$80,405
|
|
$93,139
|
|
$87,521
|
|
$78,879
|
|
$77,853
|
|
$2,552
|
3.3%
|
Credit
cards
|
$77,251
|
|
$89,994
|
|
$84,319
|
|
$75,753
|
|
$74,952
|
|
$2,299
|
3.1%
|
Consumer installment
loans
|
$1,860
|
|
$1,845
|
|
$1,789
|
|
$1,708
|
|
$1,590
|
|
$270
|
17.0%
|
Commercial credit
products
|
$1,256
|
|
$1,260
|
|
$1,353
|
|
$1,356
|
|
$1,275
|
|
$(19)
|
(1.5)%
|
Other
|
$38
|
|
$40
|
|
$60
|
|
$62
|
|
$36
|
|
$2
|
5.6%
|
Average loan
receivables, including held for sale
|
$89,903
|
|
$89,340
|
|
$86,783
|
|
$77,853
|
|
$79,090
|
|
$10,813
|
13.7%
|
Period-end active
accounts (in thousands)(9)(10)
|
74,812
|
|
80,339
|
|
75,457
|
|
69,767
|
|
68,891
|
|
5,921
|
8.6%
|
Average active
accounts (in thousands)(9)(10)
|
77,132
|
|
77,382
|
|
75,482
|
|
69,344
|
|
71,323
|
|
5,809
|
8.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIQUIDITY
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquid
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and
equivalents
|
$12,963
|
|
$9,396
|
|
$12,068
|
|
$15,675
|
|
$13,044
|
|
$(81)
|
(0.6)%
|
Total liquid
assets
|
$17,360
|
|
$14,822
|
|
$18,214
|
|
$21,491
|
|
$18,557
|
|
$(1,197)
|
(6.5)%
|
Undrawn credit
facilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Undrawn credit
facilities
|
$6,050
|
|
$4,375
|
|
$5,125
|
|
$6,500
|
|
$6,000
|
|
$50
|
0.8%
|
Total liquid
assets and undrawn credit facilities
|
$23,410
|
|
$19,197
|
|
$23,339
|
|
$27,991
|
|
$24,557
|
|
$(1,147)
|
(4.7)%
|
Liquid assets % of
total assets
|
16.47%
|
|
13.88%
|
|
17.42%
|
|
21.68%
|
|
19.42%
|
|
|
(2.95)%
|
Liquid assets
including undrawn credit facilities % of total assets
|
22.21%
|
|
17.98%
|
|
22.32%
|
|
28.24%
|
|
25.70%
|
|
|
(3.49)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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,
after retailer share arrangements, plus other income.
|
(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
|
|
|
|
|
Mar 31,
2019
|
|
Dec 31,
2018
|
|
Sep 30,
2018
|
|
Jun 30,
2018
|
|
Mar 31,
2018
|
|
1Q'19 vs.
1Q'18
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
$4,687
|
|
$4,774
|
|
$4,617
|
|
$4,081
|
|
$4,172
|
|
$515
|
12.3%
|
Interest on
investment securities
|
99
|
|
102
|
|
77
|
|
93
|
|
72
|
|
27
|
37.5%
|
Total interest
income
|
4,786
|
|
4,876
|
|
4,694
|
|
4,174
|
|
4,244
|
|
542
|
12.8%
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
375
|
|
350
|
|
314
|
|
273
|
|
249
|
|
126
|
50.6%
|
Interest on
borrowings of consolidated securitization entities
|
100
|
|
104
|
|
86
|
|
80
|
|
74
|
|
26
|
35.1%
|
Interest on
third-party debt
|
85
|
|
89
|
|
88
|
|
84
|
|
79
|
|
6
|
7.6%
|
Total interest
expense
|
560
|
|
543
|
|
488
|
|
437
|
|
402
|
|
158
|
39.3%
|
Net interest
income
|
4,226
|
|
4,333
|
|
4,206
|
|
3,737
|
|
3,842
|
|
384
|
10.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retailer share
arrangements
|
(954)
|
|
(855)
|
|
(871)
|
|
(653)
|
|
(720)
|
|
(234)
|
32.5%
|
Net interest income,
after retailer share arrangements
|
3,272
|
|
3,478
|
|
3,335
|
|
3,084
|
|
3,122
|
|
150
|
4.8%
|
Provision for loan
losses
|
859
|
|
1,452
|
|
1,451
|
|
1,280
|
|
1,362
|
|
(503)
|
(36.9)%
|
Net interest income,
after retailer share arrangements and provision for loan
losses
|
2,413
|
|
2,026
|
|
1,884
|
|
1,804
|
|
1,760
|
|
653
|
37.1%
|
Other
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interchange
revenue
|
165
|
|
193
|
|
182
|
|
177
|
|
158
|
|
7
|
4.4%
|
Debt cancellation
fees
|
68
|
|
70
|
|
65
|
|
66
|
|
66
|
|
2
|
3.0%
|
Loyalty
programs
|
(167)
|
|
(208)
|
|
(196)
|
|
(192)
|
|
(155)
|
|
(12)
|
7.7%
|
Other
|
26
|
|
9
|
|
12
|
|
12
|
|
6
|
|
20
|
NM
|
Total other
income
|
92
|
|
64
|
|
63
|
|
63
|
|
75
|
|
17
|
22.7%
|
Other
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
353
|
|
353
|
|
365
|
|
351
|
|
358
|
|
(5)
|
(1.4)%
|
Professional
fees
|
232
|
|
231
|
|
232
|
|
177
|
|
166
|
|
66
|
39.8%
|
Marketing and
business development
|
123
|
|
166
|
|
131
|
|
110
|
|
121
|
|
2
|
1.7%
|
Information
processing
|
113
|
|
118
|
|
105
|
|
99
|
|
104
|
|
9
|
8.7%
|
Other
|
222
|
|
210
|
|
221
|
|
238
|
|
239
|
|
(17)
|
(7.1)%
|
Total other
expense
|
1,043
|
|
1,078
|
|
1,054
|
|
975
|
|
988
|
|
55
|
5.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before
provision for income taxes
|
1,462
|
|
1,012
|
|
893
|
|
892
|
|
847
|
|
615
|
72.6%
|
Provision for income
taxes
|
355
|
|
229
|
|
222
|
|
196
|
|
207
|
|
148
|
71.5%
|
Net earnings
attributable to common stockholders
|
$1,107
|
|
$783
|
|
$671
|
|
$696
|
|
$640
|
|
$467
|
73.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SYNCHRONY
FINANCIAL
|
|
|
|
|
|
|
|
|
|
|
|
|
STATEMENTS OF
FINANCIAL POSITION
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited, $ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
|
|
Mar 31,
2019
|
|
Dec 31,
2018
|
|
Sep 30,
2018
|
|
Jun 30,
2018
|
|
Mar 31,
2018
|
|
Mar 31, 2019
vs.
Mar 31, 2018
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and
equivalents
|
$12,963
|
|
$9,396
|
|
$12,068
|
|
$15,675
|
|
$13,044
|
|
$(81)
|
(0.6)%
|
Debt
securities
|
5,506
|
|
6,062
|
|
7,281
|
|
6,779
|
|
6,259
|
|
(753)
|
(12.0)%
|
Loan
receivables:
|
|
|
|
|
|
|
|
|
|
|
|
|
Unsecuritized loans
held for investment
|
54,907
|
|
64,969
|
|
59,868
|
|
50,884
|
|
52,469
|
|
2,438
|
4.6%
|
Restricted loans of
consolidated securitization entities
|
25,498
|
|
28,170
|
|
27,653
|
|
27,995
|
|
25,384
|
|
114
|
0.4%
|
Total loan
receivables
|
80,405
|
|
93,139
|
|
87,521
|
|
78,879
|
|
77,853
|
|
2,552
|
3.3%
|
Less: Allowance for
loan losses
|
(5,942)
|
|
(6,427)
|
|
(6,223)
|
|
(5,859)
|
|
(5,738)
|
|
(204)
|
3.6%
|
Loan receivables,
net
|
74,463
|
|
86,712
|
|
81,298
|
|
73,020
|
|
72,115
|
|
2,348
|
3.3%
|
Loan receivables held
for sale
|
8,052
|
|
-
|
|
-
|
|
-
|
|
-
|
|
8,052
|
NM
|
Goodwill
|
1,076
|
|
1,024
|
|
1,024
|
|
1,024
|
|
991
|
|
85
|
8.6%
|
Intangible assets,
net
|
1,259
|
|
1,137
|
|
1,105
|
|
863
|
|
780
|
|
479
|
61.4%
|
Other
assets
|
2,065
|
|
2,461
|
|
1,769
|
|
1,761
|
|
2,370
|
|
(305)
|
(12.9)%
|
Total
assets
|
$105,384
|
|
$106,792
|
|
$104,545
|
|
$99,122
|
|
$95,559
|
|
$9,825
|
10.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposit accounts
|
$63,787
|
|
$63,738
|
|
$62,030
|
|
$58,734
|
|
$56,285
|
|
$7,502
|
13.3%
|
Non-interest-bearing
deposit accounts
|
273
|
|
281
|
|
287
|
|
277
|
|
285
|
|
(12)
|
(4.2)%
|
Total
deposits
|
64,060
|
|
64,019
|
|
62,317
|
|
59,011
|
|
56,570
|
|
7,490
|
13.2%
|
Borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings of
consolidated securitization entities
|
12,091
|
|
14,439
|
|
14,187
|
|
12,170
|
|
12,214
|
|
(123)
|
(1.0)%
|
Senior unsecured
notes
|
9,800
|
|
9,557
|
|
9,554
|
|
9,551
|
|
8,801
|
|
999
|
11.4%
|
Total
borrowings
|
21,891
|
|
23,996
|
|
23,741
|
|
21,721
|
|
21,015
|
|
876
|
4.2%
|
Accrued expenses and
other liabilities
|
4,724
|
|
4,099
|
|
4,491
|
|
3,932
|
|
3,618
|
|
1,106
|
30.6%
|
Total
liabilities
|
90,675
|
|
92,114
|
|
90,549
|
|
84,664
|
|
81,203
|
|
9,472
|
11.7%
|
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
stock
|
1
|
|
1
|
|
1
|
|
1
|
|
1
|
|
-
|
- %
|
Additional paid-in
capital
|
9,489
|
|
9,482
|
|
9,470
|
|
9,486
|
|
9,470
|
|
19
|
0.2%
|
Retained
earnings
|
9,939
|
|
8,986
|
|
8,355
|
|
7,906
|
|
7,334
|
|
2,605
|
35.5%
|
Accumulated other
comprehensive income:
|
(56)
|
|
(62)
|
|
(99)
|
|
(93)
|
|
(86)
|
|
30
|
(34.9)%
|
Treasury
Stock
|
(4,664)
|
|
(3,729)
|
|
(3,731)
|
|
(2,842)
|
|
(2,363)
|
|
(2,301)
|
97.4%
|
Total
equity
|
14,709
|
|
14,678
|
|
13,996
|
|
14,458
|
|
14,356
|
|
353
|
2.5%
|
Total liabilities and
equity
|
$105,384
|
|
$106,792
|
|
$104,545
|
|
$99,122
|
|
$95,559
|
|
$9,825
|
10.3%
|
SYNCHRONY
FINANCIAL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCES,
NET INTEREST INCOME AND NET INTEREST MARGIN
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited, $ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Mar 31,
2019
|
|
Dec 31,
2018
|
|
Sep 30,
2018
|
|
Jun 30,
2018
|
|
Mar 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
|
$11,033
|
|
$65
|
|
2.39%
|
|
$10,856
|
|
$62
|
|
2.27%
|
|
$7,901
|
|
$39
|
|
1.96%
|
|
$13,097
|
|
$59
|
|
1.81%
|
|
$12,434
|
|
$47
|
|
1.53%
|
Securities available
for sale
|
5,640
|
|
34
|
|
2.44%
|
|
6,837
|
|
40
|
|
2.32%
|
|
7,022
|
|
38
|
|
2.15%
|
|
6,803
|
|
34
|
|
2.00%
|
|
5,584
|
|
25
|
|
1.82%
|
Loan
receivables:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit cards,
including held for sale
|
86,768
|
|
4,611
|
|
21.55%
|
|
86,131
|
|
4,695
|
|
21.63%
|
|
83,609
|
|
4,538
|
|
21.53%
|
|
74,809
|
|
4,010
|
|
21.50%
|
|
76,181
|
|
4,099
|
|
21.82%
|
Consumer installment
loans
|
1,844
|
|
42
|
|
9.24%
|
|
1,815
|
|
42
|
|
9.18%
|
|
1,753
|
|
41
|
|
9.28%
|
|
1,648
|
|
37
|
|
9.01%
|
|
1,572
|
|
36
|
|
9.29%
|
Commercial credit
products
|
1,252
|
|
34
|
|
11.01%
|
|
1,344
|
|
37
|
|
10.92%
|
|
1,355
|
|
37
|
|
10.83%
|
|
1,346
|
|
34
|
|
10.13%
|
|
1,286
|
|
36
|
|
11.35%
|
Other
|
39
|
|
-
|
|
- %
|
|
50
|
|
-
|
|
- %
|
|
66
|
|
1
|
|
NM
|
|
50
|
|
-
|
|
- %
|
|
51
|
|
1
|
|
NM
|
Total loan
receivables, including held for sale
|
89,903
|
|
4,687
|
|
21.14%
|
|
89,340
|
|
4,774
|
|
21.20%
|
|
86,783
|
|
4,617
|
|
21.11%
|
|
77,853
|
|
4,081
|
|
21.03%
|
|
79,090
|
|
4,172
|
|
21.39%
|
Total
interest-earning assets
|
106,576
|
|
4,786
|
|
18.21%
|
|
107,033
|
|
4,876
|
|
18.07%
|
|
101,706
|
|
4,694
|
|
18.31%
|
|
97,753
|
|
4,174
|
|
17.13%
|
|
97,108
|
|
4,244
|
|
17.72%
|
Non-interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
1,335
|
|
|
|
|
|
1,320
|
|
|
|
|
|
1,217
|
|
|
|
|
|
1,161
|
|
|
|
|
|
1,197
|
|
|
|
|
Allowance for loan
losses
|
(6,341)
|
|
|
|
|
|
(6,259)
|
|
|
|
|
|
(5,956)
|
|
|
|
|
|
(5,768)
|
|
|
|
|
|
(5,608)
|
|
|
|
|
Other
assets
|
3,729
|
|
|
|
|
|
3,688
|
|
|
|
|
|
3,482
|
|
|
|
|
|
3,068
|
|
|
|
|
|
3,010
|
|
|
|
|
Total
non-interest-earning assets
|
(1,277)
|
|
|
|
|
|
(1,251)
|
|
|
|
|
|
(1,257)
|
|
|
|
|
|
(1,539)
|
|
|
|
|
|
(1,401)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$105,299
|
|
|
|
|
|
$105,782
|
|
|
|
|
|
$100,449
|
|
|
|
|
|
$96,214
|
|
|
|
|
|
$95,707
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposit accounts
|
$63,776
|
|
$375
|
|
2.38%
|
|
$62,999
|
|
$350
|
|
2.20%
|
|
$60,123
|
|
$314
|
|
2.07%
|
|
$57,303
|
|
$273
|
|
1.91%
|
|
$56,356
|
|
$249
|
|
1.79%
|
Borrowings of
consolidated securitization entities
|
13,407
|
|
100
|
|
3.02%
|
|
14,223
|
|
104
|
|
2.90%
|
|
12,306
|
|
86
|
|
2.77%
|
|
11,821
|
|
80
|
|
2.71%
|
|
12,410
|
|
74
|
|
2.42%
|
Senior unsecured
notes
|
8,892
|
|
85
|
|
3.88%
|
|
9,554
|
|
89
|
|
3.70%
|
|
9,552
|
|
88
|
|
3.66%
|
|
9,114
|
|
84
|
|
3.70%
|
|
8,795
|
|
79
|
|
3.64%
|
Total
interest-bearing liabilities
|
86,075
|
|
560
|
|
2.64%
|
|
86,776
|
|
543
|
|
2.48%
|
|
81,981
|
|
488
|
|
2.36%
|
|
78,238
|
|
437
|
|
2.24%
|
|
77,561
|
|
402
|
|
2.10%
|
Non-interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
deposit accounts
|
286
|
|
|
|
|
|
284
|
|
|
|
|
|
275
|
|
|
|
|
|
270
|
|
|
|
|
|
300
|
|
|
|
|
Other
liabilities
|
4,148
|
|
|
|
|
|
4,283
|
|
|
|
|
|
3,772
|
|
|
|
|
|
3,299
|
|
|
|
|
|
3,570
|
|
|
|
|
Total
non-interest-bearing liabilities
|
4,434
|
|
|
|
|
|
4,567
|
|
|
|
|
|
4,047
|
|
|
|
|
|
3,569
|
|
|
|
|
|
3,870
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
90,509
|
|
|
|
|
|
91,343
|
|
|
|
|
|
86,028
|
|
|
|
|
|
81,807
|
|
|
|
|
|
81,431
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
equity
|
14,790
|
|
|
|
|
|
14,439
|
|
|
|
|
|
14,421
|
|
|
|
|
|
14,407
|
|
|
|
|
|
14,276
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
and equity
|
$105,299
|
|
|
|
|
|
$105,782
|
|
|
|
|
|
$100,449
|
|
|
|
|
|
$96,214
|
|
|
|
|
|
$95,707
|
|
|
|
|
Net interest
income
|
|
|
$4,226
|
|
|
|
|
|
$4,333
|
|
|
|
|
|
$4,206
|
|
|
|
|
|
$3,737
|
|
|
|
|
|
$3,842
|
|
|
Interest rate
spread(1)
|
|
|
|
|
15.57%
|
|
|
|
|
|
15.59%
|
|
|
|
|
|
15.95%
|
|
|
|
|
|
14.89%
|
|
|
|
|
|
15.62%
|
Net interest
margin(2)
|
|
|
|
|
16.08%
|
|
|
|
|
|
16.06%
|
|
|
|
|
|
16.41%
|
|
|
|
|
|
15.33%
|
|
|
|
|
|
16.05%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
Mar 31,
2019
|
|
Dec 31,
2018
|
|
Sep 30,
2018
|
|
Jun 30,
2018
|
|
Mar 31,
2018
|
|
Mar 31, 2019
vs.
Mar 31, 2018
|
BALANCE SHEET
STATISTICS
|
|
|
|
|
|
|
|
|
|
|
|
|
Total common
equity
|
$14,709
|
|
$14,678
|
|
$13,996
|
|
$14,458
|
|
$14,356
|
|
$353
|
2.5%
|
Total common equity
as a % of total assets
|
13.96%
|
|
13.74%
|
|
13.39%
|
|
14.59%
|
|
15.02%
|
|
|
(1.06)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible
assets
|
$103,049
|
|
$104,631
|
|
$102,416
|
|
$97,235
|
|
$93,788
|
|
$9,261
|
9.9%
|
Tangible common
equity(1)
|
$12,374
|
|
$12,517
|
|
$11,867
|
|
$12,571
|
|
$12,585
|
|
$(211)
|
(1.7)%
|
Tangible common
equity as a % of tangible assets(1)
|
12.01%
|
|
11.96%
|
|
11.59%
|
|
12.93%
|
|
13.42%
|
|
|
(1.41)%
|
Tangible common
equity per share(1)
|
$17.96
|
|
$17.41
|
|
$16.51
|
|
$16.84
|
|
$16.55
|
|
$1.41
|
8.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REGULATORY CAPITAL
RATIOS(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basel III Fully
Phased-in
|
|
|
|
Total risk-based
capital ratio(3)
|
15.8%
|
|
15.3%
|
|
15.5%
|
|
18.0%
|
|
18.1%
|
|
|
|
Tier 1 risk-based
capital ratio(4)
|
14.5%
|
|
14.0%
|
|
14.2%
|
|
16.6%
|
|
16.8%
|
|
|
|
Tier 1 leverage
ratio(5)
|
12.3%
|
|
12.3%
|
|
12.3%
|
|
13.6%
|
|
13.7%
|
|
|
|
Common equity Tier 1
capital ratio
|
14.5%
|
|
14.0%
|
|
14.2%
|
|
16.6%
|
|
16.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 March 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
|
|
|
|
|
Mar 31,
2019
|
|
Dec 31,
2018
|
|
Sep 30,
2018
|
|
Jun 30,
2018
|
|
Mar 31,
2018
|
|
1Q'19 vs.
1Q'18
|
RETAIL
CARD(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase
volume(2)(3)
|
$24,660
|
|
$31,755
|
|
$27,863
|
|
$25,926
|
|
$22,141
|
|
$2,519
|
11.4%
|
Period-end loan
receivables
|
$51,572
|
|
$63,827
|
|
$59,139
|
|
$51,473
|
|
$51,117
|
|
$455
|
0.9%
|
Average loan
receivables, including held for sale
|
$60,964
|
|
$60,604
|
|
$58,964
|
|
$51,011
|
|
$52,251
|
|
$8,713
|
16.7%
|
Average active
accounts (in thousands)(3)(4)
|
58,632
|
|
58,962
|
|
57,459
|
|
51,680
|
|
53,463
|
|
5,169
|
9.7%
|
Interest and fees on
loans
|
$3,454
|
|
$3,502
|
|
$3,383
|
|
$2,915
|
|
$3,015
|
|
$439
|
14.6%
|
Other
income
|
$76
|
|
$59
|
|
$57
|
|
$54
|
|
$69
|
|
$7
|
10.1%
|
Retailer share
arrangements
|
$(940)
|
|
$(825)
|
|
$(844)
|
|
$(637)
|
|
$(708)
|
|
$(232)
|
32.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PAYMENT
SOLUTIONS(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase
volume(2)
|
$5,249
|
|
$6,035
|
|
$6,007
|
|
$5,702
|
|
$5,064
|
|
$185
|
3.7%
|
Period-end loan
receivables
|
$19,379
|
|
$19,815
|
|
$19,064
|
|
$18,320
|
|
$17,927
|
|
$1,452
|
8.1%
|
Average loan
receivables, including held for sale
|
$19,497
|
|
$19,333
|
|
$18,659
|
|
$17,978
|
|
$18,051
|
|
$1,446
|
8.0%
|
Average active
accounts (in thousands)(4)
|
12,406
|
|
12,350
|
|
12,062
|
|
11,845
|
|
12,009
|
|
397
|
3.3%
|
Interest and fees on
loans
|
$686
|
|
$708
|
|
$683
|
|
$644
|
|
$643
|
|
$43
|
6.7%
|
Other
income
|
$1
|
|
$(2)
|
|
$(2)
|
|
$(2)
|
|
$(2)
|
|
$3
|
(150.0)%
|
Retailer share
arrangements
|
$(12)
|
|
$(25)
|
|
$(24)
|
|
$(14)
|
|
$(10)
|
|
$(2)
|
20.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CARECREDIT
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase
volume(2)
|
$2,604
|
|
$2,530
|
|
$2,573
|
|
$2,640
|
|
$2,421
|
|
$183
|
7.6%
|
Period-end loan
receivables
|
$9,454
|
|
$9,497
|
|
$9,318
|
|
$9,086
|
|
$8,809
|
|
$645
|
7.3%
|
Average loan
receivables, including held for sale
|
$9,442
|
|
$9,403
|
|
$9,160
|
|
$8,864
|
|
$8,788
|
|
$654
|
7.4%
|
Average active
accounts (in thousands)(4)
|
6,094
|
|
6,070
|
|
5,961
|
|
5,819
|
|
5,851
|
|
243
|
4.2%
|
Interest and fees on
loans
|
$547
|
|
$564
|
|
$551
|
|
$522
|
|
$514
|
|
$33
|
6.4%
|
Other
income
|
$15
|
|
$7
|
|
$8
|
|
$11
|
|
$8
|
|
$7
|
87.5%
|
Retailer share
arrangements
|
$(2)
|
|
$(5)
|
|
$(3)
|
|
$(2)
|
|
$(2)
|
|
$-
|
- %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
SYF
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase
volume(2)(3)
|
$32,513
|
|
$40,320
|
|
$36,443
|
|
$34,268
|
|
$29,626
|
|
$2,887
|
9.7%
|
Period-end loan
receivables
|
$80,405
|
|
$93,139
|
|
$87,521
|
|
$78,879
|
|
$77,853
|
|
$2,552
|
3.3%
|
Average loan
receivables, including held for sale
|
$89,903
|
|
$89,340
|
|
$86,783
|
|
$77,853
|
|
$79,090
|
|
$10,813
|
13.7%
|
Average active
accounts (in thousands)(3)(4)
|
77,132
|
|
77,382
|
|
75,482
|
|
69,344
|
|
71,323
|
|
5,809
|
8.1%
|
Interest and fees on
loans
|
$4,687
|
|
$4,774
|
|
$4,617
|
|
$4,081
|
|
$4,172
|
|
$515
|
12.3%
|
Other
income
|
$92
|
|
$64
|
|
$63
|
|
$63
|
|
$75
|
|
$17
|
22.7%
|
Retailer share
arrangements
|
$(954)
|
|
$(855)
|
|
$(871)
|
|
$(653)
|
|
$(720)
|
|
$(234)
|
32.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
Mar 31,
2019
|
|
Dec 31,
2018
|
|
Sep 30,
2018
|
|
Jun 30,
2018
|
|
Mar 31,
2018
|
COMMON EQUITY
MEASURES
|
|
|
|
|
|
|
|
|
|
GAAP Total common
equity
|
$14,709
|
|
$14,678
|
|
$13,996
|
|
$14,458
|
|
$14,356
|
Less:
Goodwill
|
(1,076)
|
|
(1,024)
|
|
(1,024)
|
|
(1,024)
|
|
(991)
|
Less: Intangible
assets, net
|
(1,259)
|
|
(1,137)
|
|
(1,105)
|
|
(863)
|
|
(780)
|
Tangible common
equity
|
$12,374
|
|
$12,517
|
|
$11,867
|
|
$12,571
|
|
$12,585
|
Adjustments for
certain deferred tax liabilities and certain items in
accumulated
comprehensive income (loss)
|
287
|
|
284
|
|
311
|
|
287
|
|
278
|
Basel III - Common
equity Tier 1 (fully phased-in)
|
$12,661
|
|
$12,801
|
|
$12,178
|
|
$12,858
|
|
$12,863
|
|
|
|
|
|
|
|
|
|
|
RISK-BASED
CAPITAL
|
|
|
|
|
|
|
|
|
|
Common equity Tier
1
|
$12,661
|
|
$12,801
|
|
$12,178
|
|
$12,858
|
|
$12,863
|
Add: Allowance for
loan losses includible in risk-based capital
|
1,152
|
|
1,211
|
|
1,137
|
|
1,027
|
|
1,015
|
Risk-based
capital
|
$13,813
|
|
$14,012
|
|
$13,315
|
|
$13,885
|
|
$13,878
|
|
|
|
|
|
|
|
|
|
|
ASSET
MEASURES
|
|
|
|
|
|
|
|
|
|
Total average
assets
|
$105,299
|
|
$105,782
|
|
$100,449
|
|
$96,214
|
|
$95,707
|
Adjustments
for:
|
|
|
|
|
|
|
|
|
|
Disallowed goodwill
and other disallowed intangible assets
(net of related deferred tax liabilities) and other
|
(2,039)
|
|
(1,845)
|
|
(1,836)
|
|
(1,670)
|
|
(1,560)
|
Total assets for
leverage purposes
|
$103,260
|
|
$103,937
|
|
$98,613
|
|
$94,544
|
|
$94,147
|
|
|
|
|
|
|
|
|
|
|
Risk-weighted
assets - Basel III (fully phased-in)
|
$87,331
|
|
$91,742
|
|
$85,941
|
|
$77,322
|
|
$76,509
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE COMMON
EQUITY PER SHARE
|
|
|
|
|
|
|
|
|
|
GAAP book value per
share
|
$21.35
|
|
$20.42
|
|
$19.47
|
|
$19.37
|
|
$18.88
|
Less:
Goodwill
|
(1.56)
|
|
(1.42)
|
|
(1.42)
|
|
(1.37)
|
|
(1.30)
|
Less: Intangible
assets, net
|
(1.83)
|
|
(1.59)
|
|
(1.54)
|
|
(1.16)
|
|
(1.03)
|
Tangible common
equity per share
|
$17.96
|
|
$17.41
|
|
$16.51
|
|
$16.84
|
|
$16.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Regulatory
measures at March 31, 2019 are presented on an estimated
basis.
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/synchrony-financial-reports-first-quarter-net-earnings-of-1-1-billion-or-1-56-per-diluted-share-300834204.html
SOURCE Synchrony