Synchrony Financial 8K Results of Operations and Financial Condition | SYF 19 Oct 21

Exhibit 99.2


SYNCHRONY FINANCIAL
FINANCIAL SUMMARY
(unaudited, in millions, except per share statistics)
	Quarter Ended														Nine Months Ended
	Sep 30, 2021		Jun 30, 2021		Mar 31, 2021		Dec 31, 2020		Sep 30, 2020		3Q'21 vs. 3Q'20				Sep 30, 2021		Sep 30, 2020		YTD'21 vs. YTD'20
EARNINGS
Net interest income	$	3,658	$	3,312	$	3,439	$	3,659	$	3,457	$	201	5.8	%	$	10,409	$	10,743	$	(334)	(3.1)	%
Retailer share arrangements	(1,266)		(1,006)		(989)		(1,047)		(899)		(367)		40.8	%	(3,261)		(2,598)		(663)		25.5	%

Provision for credit losses	25		(194)		334		750		1,210		(1,185)		(97.9)	%	165		4,560		(4,395)		(96.4)	%
Net interest income, after retailer share arrangements and provision for credit losses	2,367		2,500		2,116		1,862		1,348		1,019		75.6	%	6,983		3,585		3,398		94.8	%
Other income	94		89		131		82		131		(37)		(28.2)	%	314		323		(9)		(2.8)	%
Other expense	961		948		932		1,000		1,067		(106)		(9.9)	%	2,841		3,055		(214)		(7.0)	%
Earnings before provision for income taxes	1,500		1,641		1,315		944		412		1,088		264.1	%	4,456		853		3,603		NM
Provision for income taxes	359		399		290		206		99		260		262.6	%	1,048		206		842		NM
Net earnings	$	1,141	$	1,242	$	1,025	$	738	$	313	$	828	264.5	%	$	3,408	$	647	$	2,761	NM
Net earnings available to common stockholders	$	1,130	$	1,232	$	1,014	$	728	$	303	$	827	272.9	%	$	3,376	$	615	$	2,761	NM



COMMON SHARE STATISTICS
Basic EPS	$	2.02	$	2.13	$	1.74	$	1.25	$	0.52	$	1.50	288.5	%	$	5.89	$	1.04	$	4.85	NM
Diluted EPS	$	2.00	$	2.12	$	1.73	$	1.24	$	0.52	$	1.48	284.6	%	$	5.84	$	1.04	$	4.80	NM

Dividend declared per share	$	0.22	$	0.22	$	0.22	$	0.22	$	0.22	$	—	—	%	$	0.66	$	0.66	$	—	—	%
Common stock price	$	48.88	$	48.52	$	40.66	$	34.71	$	26.17	$	22.71	86.8	%	$	48.88	$	26.17	$	22.71	86.8	%
Book value per share	$	24.13	$	23.48	$	21.86	$	20.49	$	19.47	$	4.66	23.9	%	$	24.13	$	19.47	$	4.66	23.9	%
Tangible common equity per share(1)	$	20.12	$	19.64	$	17.95	$	16.72	$	15.75	$	4.37	27.7	%	$	20.12	$	15.75	$	4.37	27.7	%

Beginning common shares outstanding	573.4		581.1		584.0		583.8		583.7		(10.3)		(1.8)	%	584.0		615.9		(31.9)		(5.2)	%
Issuance of common shares	—		—		—		—		—		—		—	%	—		—		—		—	%
Stock-based compensation	0.5		1.0		2.2		0.2		0.1		0.4		NM		3.7		1.5		2.2		146.7	%
Shares repurchased	(26.7)		(8.7)		(5.1)		—		—		(26.7)		NM		(40.5)		(33.6)		(6.9)		20.5	%
Ending common shares outstanding	547.2		573.4		581.1		584.0		583.8		(36.6)		(6.3)	%	547.2		583.8		(36.6)		(6.3)	%

Weighted average common shares outstanding	560.6		577.2		583.3		583.9		583.8		(23.2)		(4.0)	%	573.6		590.8		(17.2)		(2.9)	%
Weighted average common shares outstanding (fully diluted)	565.6		581.7		587.5		586.6		584.8		(19.2)		(3.3)	%	578.2		592.2		(14.0)		(2.4)	%

(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)
	Quarter Ended																			Nine Months Ended
	Sep 30, 2021			Jun 30, 2021			Mar 31, 2021			Dec 31, 2020			Sep 30, 2020			3Q'21 vs. 3Q'20				Sep 30, 2021			Sep 30, 2020			YTD'21 vs. YTD'20
PERFORMANCE METRICS
Return on assets(1)	4.9		%	5.3		%	4.3		%	3.1		%	1.3		%			3.6	%	4.9		%	0.9		%			4.0	%
Return on equity(2)	32.1		%	36.5		%	31.8		%	23.6		%	10.3		%			21.8	%	33.5		%	7.0		%			26.5	%
Return on tangible common equity(3)	40.1		%	46.3		%	40.8		%	30.4		%	13.1		%			27.0	%	42.4		%	8.8		%			33.6	%



Net interest margin(4)	15.45		%	13.78		%	13.98		%	14.64		%	13.80		%			1.65	%	14.40		%	14.17		%			0.23	%
Efficiency ratio(5)	38.7		%	39.6		%	36.1		%	37.1		%	39.7		%			(1.0)	%	38.1		%	36.1		%			2.0	%
Other expense as a % of average loan receivables, including held for sale	4.84		%	4.95		%	4.82		%	5.01		%	5.44		%			(0.60)	%	4.87		%	5.08		%			(0.21)	%
Effective income tax rate	23.9		%	24.3		%	22.1		%	21.8		%	24.0		%			(0.1)	%	23.5		%	24.2		%			(0.7)	%


CREDIT QUALITY METRICS
Net charge-offs as a % of average loan receivables, including held for sale	2.18		%	3.57		%	3.62		%	3.16		%	4.42		%			(2.24)	%	3.11		%	5.05		%			(1.94)	%
30+ days past due as a % of period-end loan receivables(6)	2.42		%	2.11		%	2.83		%	3.07		%	2.67		%			(0.25)	%	2.42		%	2.67		%			(0.25)	%
90+ days past due as a % of period-end loan receivables(6)	1.05		%	1.00		%	1.52		%	1.40		%	1.24		%			(0.19)	%	1.05		%	1.24		%			(0.19)	%
Net charge-offs	$	432		$	684		$	699		$	631		$	866		$	(434)	(50.1)	%	$	1,815		$	3,037		$	(1,222)	(40.2)	%
Loan receivables delinquent over 30 days(6)	$	1,850		$	1,653		$	2,175		$	2,514		$	2,100		$	(250)	(11.9)	%	$	1,850		$	2,100		$	(250)	(11.9)	%
Loan receivables delinquent over 90 days(6)	$	804		$	784		$	1,170		$	1,143		$	973		$	(169)	(17.4)	%	$	804		$	973		$	(169)	(17.4)	%

Allowance for credit losses (period-end)	$	8,616		$	9,023		$	9,901		$	10,265		$	10,146		$	(1,530)	(15.1)	%	$	8,616		$	10,146		$	(1,530)	(15.1)	%
Allowance coverage ratio(7)	11.28		%	11.51		%	12.88		%	12.54		%	12.92		%			(1.64)	%	11.28		%	12.92		%			(1.64)	%

BUSINESS METRICS
Purchase volume(8)(9)	$	41,912		$	42,121		$	34,749		$	39,874		$	36,013		$	5,899	16.4	%	$	118,782		$	99,210		$	19,572	19.7	%
Period-end loan receivables	$	76,388		$	78,374		$	76,858		$	81,867		$	78,521		$	(2,133)	(2.7)	%	$	76,388		$	78,521		$	(2,133)	(2.7)	%
Credit cards	$	72,289		$	74,429		$	73,244		$	78,455		$	75,204		$	(2,915)	(3.9)	%	$	72,289		$	75,204		$	(2,915)	(3.9)	%
Consumer installment loans	$	2,614		$	2,507		$	2,319		$	2,125		$	1,987		$	627	31.6	%	$	2,614		$	1,987		$	627	31.6	%
Commercial credit products	$	1,401		$	1,379		$	1,248		$	1,250		$	1,270		$	131	10.3	%	$	1,401		$	1,270		$	131	10.3	%
Other	$	84		$	59		$	47		$	37		$	60		$	24	40.0	%	$	84		$	60		$	24	40.0	%
Average loan receivables, including held for sale	$	78,714		$	76,821		$	78,358		$	79,452		$	78,005		$	709	0.9	%	$	77,965		$	80,368		$	(2,403)	(3.0)	%
Period-end active accounts (in thousands)(9)(10)	67,245			66,892			65,219			68,540			64,800			2,445		3.8	%	67,245			64,800			2,445		3.8	%
Average active accounts (in thousands)(9)(10)	67,189			65,810			66,280			66,261			64,270			2,919		4.5	%	66,500			67,246			(746)		(1.1)	%

LIQUIDITY
Liquid assets
Cash and equivalents	$	9,806		$	11,117		$	16,620		$	11,524		$	13,552		$	(3,746)	(27.6)	%	$	9,806		$	13,552		$	(3,746)	(27.6)	%
Total liquid assets	$	14,664		$	16,297		$	22,636		$	18,321		$	21,402		$	(6,738)	(31.5)	%	$	14,664		$	21,402		$	(6,738)	(31.5)	%
Undrawn credit facilities
Undrawn credit facilities	$	3,700		$	4,900		$	5,400		$	5,400		$	5,400		$	(1,700)	(31.5)	%	$	3,700		$	5,400		$	(1,700)	(31.5)	%
Total liquid assets and undrawn credit facilities	$	18,364		$	21,197		$	28,036		$	23,721		$	26,802		$	(8,438)	(31.5)	%	$	18,364		$	26,802		$	(8,438)	(31.5)	%
Liquid assets % of total assets	15.95		%	17.71		%	23.62		%	19.09		%	22.37		%			(6.42)	%	15.95		%	22.37		%			(6.42)	%
Liquid assets including undrawn credit facilities % of total assets	19.97		%	23.04		%	29.25		%	24.72		%	28.02		%			(8.05)	%	19.97		%	28.02		%			(8.05)	%



(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 available to common stockholders 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, plus other income, less retailer share arrangements.
(6) Based on customer statement-end balances extrapolated to the respective period-end date.
(7) Allowance coverage ratio represents allowance for credit 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														Nine Months Ended
	Sep 30, 2021		Jun 30, 2021		Mar 31, 2021		Dec 31, 2020		Sep 30, 2020		3Q'21 vs. 3Q'20				Sep 30, 2021		Sep 30, 2020		YTD'21 vs. YTD'20
Interest income:
Interest and fees on loans	$	3,887	$	3,567	$	3,732	$	3,981	$	3,821	$	66	1.7	%	$	11,186	$	11,969	$	(783)	(6.5)	%
Interest on cash and debt securities	11		11		10		12		16		(5)		(31.3)	%	32		105		(73)		(69.5)	%
Total interest income	3,898		3,578		3,742		3,993		3,837		61		1.6	%	11,218		12,074		(856)		(7.1)	%

Interest expense:
Interest on deposits	131		146		170		200		245		(114)		(46.5)	%	447		894		(447)		(50.0)	%
Interest on borrowings of consolidated securitization entities	41		44		51		52		53		(12)		(22.6)	%	136		185		(49)		(26.5)	%
Interest on senior unsecured notes	68		76		82		82		82		(14)		(17.1)	%	226		252		(26)		(10.3)	%

Total interest expense	240		266		303		334		380		(140)		(36.8)	%	809		1,331		(522)		(39.2)	%

Net interest income	3,658		3,312		3,439		3,659		3,457		201		5.8	%	10,409		10,743		(334)		(3.1)	%

Retailer share arrangements	(1,266)		(1,006)		(989)		(1,047)		(899)		(367)		40.8	%	(3,261)		(2,598)		(663)		25.5	%


Provision for credit losses	25		(194)		334		750		1,210		(1,185)		(97.9)	%	165		4,560		(4,395)		(96.4)	%
Net interest income, after retailer share arrangements and provision for credit losses	2,367		2,500		2,116		1,862		1,348		1,019		75.6	%	6,983		3,585		3,398		94.8	%

Other income:
Interchange revenue	232		223		171		185		172		60		34.9	%	626		467		159		34.0	%
Debt cancellation fees	70		66		69		72		68		2		2.9	%	205		206		(1)		(0.5)	%
Loyalty programs	(256)		(247)		(179)		(202)		(155)		(101)		65.2	%	(682)		(447)		(235)		52.6	%
Other	48		47		70		27		46		2		4.3	%	165		97		68		70.1	%
Total other income	94		89		131		82		131		(37)		(28.2)	%	314		323		(9)		(2.8)	%

Other expense:
Employee costs	369		359		364		347		382		(13)		(3.4)	%	1,092		1,033		59		5.7	%
Professional fees	196		189		190		186		187		9		4.8	%	575		573		2		0.3	%
Marketing and business development	110		114		95		139		107		3		2.8	%	319		309		10		3.2	%
Information processing	139		137		131		128		125		14		11.2	%	407		364		43		11.8	%
Other	147		149		152		200		266		(119)		(44.7)	%	448		776		(328)		(42.3)	%
Total other expense	961		948		932		1,000		1,067		(106)		(9.9)	%	2,841		3,055		(214)		(7.0)	%

Earnings before provision for income taxes	1,500		1,641		1,315		944		412		1,088		264.1	%	4,456		853		3,603		NM
Provision for income taxes	359		399		290		206		99		260		262.6	%	1,048		206		842		NM
Net earnings	$	1,141	$	1,242	$	1,025	$	738	$	313	$	828	264.5	%	$	3,408	$	647	$	2,761	NM

Net earnings available to common stockholders	$	1,130	$	1,232	$	1,014	$	728	$	303	$	827	272.9	%	$	3,376	$	615	$	2,761	NM


SYNCHRONY FINANCIAL
STATEMENTS OF FINANCIAL POSITION
(unaudited, $ in millions)
	Quarter Ended
	Sep 30, 2021		Jun 30, 2021		Mar 31, 2021		Dec 31, 2020		Sep 30, 2020		Sep 30, 2021 vs. Sep 30, 2020
Assets
Cash and equivalents	$	9,806	$	11,117	$	16,620	$	11,524	$	13,552	$	(3,746)	(27.6)	%
Debt securities	5,444		5,728		6,550		7,469		8,432		(2,988)		(35.4)	%
Loan receivables:
Unsecuritized loans held for investment	56,745		55,994		53,823		56,472		52,613		4,132		7.9	%
Restricted loans of consolidated securitization entities	19,643		22,380		23,035		25,395		25,908		(6,265)		(24.2)	%
Total loan receivables	76,388		78,374		76,858		81,867		78,521		(2,133)		(2.7)	%
Less: Allowance for credit losses	(8,616)		(9,023)		(9,901)		(10,265)		(10,146)		1,530		(15.1)	%
Loan receivables, net	67,772		69,351		66,957		71,602		68,375		(603)		(0.9)	%
Loan receivables held for sale	3,450		—		23		5		4		3,446		NM
Goodwill	1,105		1,105		1,104		1,078		1,078		27		2.5	%
Intangible assets, net	1,090		1,098		1,169		1,125		1,091		(1)		(0.1)	%
Other assets	3,270		3,618		3,431		3,145		3,126		144		4.6	%
Total assets	$	91,937	$	92,017	$	95,854	$	95,948	$	95,658	$	(3,721)	(3.9)	%

Liabilities and Equity
Deposits:
Interest-bearing deposit accounts	$	59,998	$	59,500	$	62,419	$	62,469	$	63,195	$	(3,197)	(5.1)	%
Non-interest-bearing deposit accounts	355		341		342		313		298		57		19.1	%
Total deposits	60,353		59,841		62,761		62,782		63,493		(3,140)		(4.9)	%
Borrowings:
Borrowings of consolidated securitization entities	6,288		6,987		7,193		7,810		7,809		(1,521)		(19.5)	%

Senior unsecured notes	6,472		6,470		7,967		7,965		7,962		(1,490)		(18.7)	%

Total borrowings	12,760		13,457		15,160		15,775		15,771		(3,011)		(19.1)	%
Accrued expenses and other liabilities	4,888		4,522		4,494		4,690		4,295		593		13.8	%
Total liabilities	78,001		77,820		82,415		83,247		83,559		(5,558)		(6.7)	%
Equity:
Preferred stock	734		734		734		734		734		—		—	%
Common stock	1		1		1		1		1		—		—	%
Additional paid-in capital	9,649		9,620		9,592		9,570		9,552		97		1.0	%
Retained earnings	13,562		12,560		11,470		10,621		10,024		3,538		35.3	%
Accumulated other comprehensive income (loss)	(64)		(56)		(56)		(51)		(31)		(33)		106.5	%
Treasury stock	(9,946)		(8,662)		(8,302)		(8,174)		(8,181)		(1,765)		21.6	%
Total equity	13,936		14,197		13,439		12,701		12,099		1,837		15.2	%
Total liabilities and equity	$	91,937	$	92,017	$	95,854	$	95,948	$	95,658	$	(3,721)	(3.9)	%


SYNCHRONY FINANCIAL
AVERAGE BALANCES, NET INTEREST INCOME AND NET INTEREST MARGIN
(unaudited, $ in millions)

	Quarter Ended
	Sep 30, 2021						Jun 30, 2021						Mar 31, 2021						Dec 31, 2020						Sep 30, 2020
			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	$	9,559	$	3	0.12	%	$	13,584	$	4	0.12	%	$	14,610	$	4	0.11	%	$	11,244	$	4	0.14	%	$	13,664	$	4	0.12	%
Securities available for sale	5,638		8		0.56	%	5,988		7		0.47	%	6,772		6		0.36	%	8,706		8		0.37	%	7,984		12		0.60	%

Loan receivables, including held for sale:
Credit cards	74,686		3,793		20.15	%	72,989		3,484		19.15	%	74,865		3,657		19.81	%	76,039		3,908		20.45	%	74,798		3,752		19.96	%
Consumer installment loans	2,555		64		9.94	%	2,417		59		9.79	%	2,219		53		9.69	%	2,057		50		9.67	%	1,892		46		9.67	%
Commercial credit products	1,407		29		8.18	%	1,363		23		6.77	%	1,231		21		6.92	%	1,293		23		7.08	%	1,238		22		7.07	%
Other	66		1		NM		52		1		NM		43		1		NM		63		—		—		77		1		NM
Total loan receivables, including held for sale	78,714		3,887		19.59	%	76,821		3,567		18.62	%	78,358		3,732		19.32	%	79,452		3,981		19.93	%	78,005		3,821		19.49	%
Total interest-earning assets	93,911		3,898		16.47	%	96,393		3,578		14.89	%	99,740		3,742		15.22	%	99,402		3,993		15.98	%	99,653		3,837		15.32	%

Non-interest-earning assets:
Cash and due from banks	1,588						1,559						1,635						1,525						1,489
Allowance for credit losses	(8,956)						(9,801)						(10,225)						(10,190)						(9,823)
Other assets	5,405						5,238						5,305						5,228						5,021
Total non-interest-earning assets	(1,963)						(3,004)						(3,285)						(3,437)						(3,313)

Total assets	$	91,948					$	93,389					$	96,455					$	95,965					$	96,340

Liabilities
Interest-bearing liabilities:
Interest-bearing deposit accounts	$	59,275	$	131	0.88	%	$	60,761	$	146	0.96	%	$	62,724	$	170	1.10	%	$	62,800	$	200	1.27	%	$	63,569	$	245	1.53	%
Borrowings of consolidated securitization entities	7,051		41		2.31	%	7,149		44		2.47	%	7,694		51		2.69	%	7,809		52		2.65	%	8,057		53		2.62	%

Senior unsecured notes	6,471		68		4.17	%	7,276		76		4.19	%	7,965		82		4.18	%	7,963		82		4.10	%	7,960		82		4.10	%

Total interest-bearing liabilities	72,797		240		1.31	%	75,186		266		1.42	%	78,383		303		1.57	%	78,572		334		1.69	%	79,586		380		1.90	%

Non-interest-bearing liabilities
Non-interest-bearing deposit accounts	358						349						346						308						307
Other liabilities	4,676						4,199						4,655						4,663						4,308
Total non-interest-bearing liabilities	5,034						4,548						5,001						4,971						4,615

Total liabilities	77,831						79,734						83,384						83,543						84,201

Equity
Total equity	14,117						13,655						13,071						12,422						12,139

Total liabilities and equity	$	91,948					$	93,389					$	96,455					$	95,965					$	96,340
Net interest income			$	3,658					$	3,312					$	3,439					$	3,659					$	3,457

Interest rate spread(1)					15.16	%					13.47	%					13.65	%					14.29	%					13.42	%
Net interest margin(2)					15.45	%					13.78	%					13.98	%					14.64	%					13.80	%



(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
AVERAGE BALANCES, NET INTEREST INCOME AND NET INTEREST MARGIN
(unaudited, $ in millions)

	Nine Months Ended Sep 30, 2021						Nine Months Ended Sep 30, 2020
			Interest		Average				Interest		Average
	Average		Income/		Yield/		Average		Income/		Yield/
	Balance		Expense		Rate		Balance		Expense		Rate
Assets
Interest-earning assets:
Interest-earning cash and equivalents	$	12,567	$	11	0.12	%	$	13,992	$	49	0.47	%
Securities available for sale	6,128		21		0.46	%	6,918		56		1.08	%

Loan receivables, including held for sale:
Credit cards	74,179		10,934		19.71	%	77,476		11,764		20.28	%
Consumer installment loans	2,398		176		9.81	%	1,624		118		9.71	%
Commercial credit products	1,334		73		7.32	%	1,210		85		9.38	%
Other	54		3		7.43	%	58		2		4.61	%
Total loan receivables, including held for sale	77,965		11,186		19.18	%	80,368		11,969		19.89	%
Total interest-earning assets	96,660		11,218		15.52	%	101,278		12,074		15.92	%

Non-interest-earning assets:
Cash and due from banks	1,594						1,475
Allowance for loan losses	(9,656)						(9,253)
Other assets	5,317						4,833
Total non-interest-earning assets	(2,745)						(2,945)

Total assets	$	93,915					$	98,333

Liabilities
Interest-bearing liabilities:
Interest-bearing deposit accounts	$	60,907	$	447	0.98	%	$	64,075	$	894	1.86	%
Borrowings of consolidated securitization entities	7,296		136		2.49	%	8,966		185		2.76	%

Senior unsecured notes	7,232		226		4.18	%	8,241		252		4.08	%

Total interest-bearing liabilities	75,435		809		1.43	%	81,282		1,331		2.19	%

Non-interest-bearing liabilities
Non-interest-bearing deposit accounts	351						305
Other liabilities	4,510						4,443
Total non-interest-bearing liabilities	4,861						4,748

Total liabilities	80,296						86,030

Equity
Total equity	13,619						12,303

Total liabilities and equity	$	93,915					$	98,333
Net interest income			$	10,409					$	10,743

Interest rate spread(1)					14.09	%					13.73	%
Net interest margin(2)					14.40	%					14.17	%

(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
	Sep 30, 2021			Jun 30, 2021			Mar 31, 2021			Dec 31, 2020			Sep 30, 2020			Sep 30, 2021 vs. Sep 30, 2020
BALANCE SHEET STATISTICS
Total common equity	$	13,202		$	13,463		$	12,705		$	11,967		$	11,365		$	1,837	16.2	%
Total common equity as a % of total assets	14.36		%	14.63		%	13.25		%	12.47		%	11.88		%			2.48	%

Tangible assets	$	89,742		$	89,814		$	93,581		$	93,745		$	93,489		$	(3,747)	(4.0)	%
Tangible common equity(1)	$	11,007		$	11,260		$	10,432		$	9,764		$	9,196		$	1,811	19.7	%
Tangible common equity as a % of tangible assets(1)	12.27		%	12.54		%	11.15		%	10.42		%	9.84		%			2.43	%
Tangible common equity per share(1)	$	20.12		$	19.64		$	17.95		$	16.72		$	15.75		$	4.37	27.7	%

REGULATORY CAPITAL RATIOS(2)(3)
	Basel III - CECL Transition
Total risk-based capital ratio(4)	19.3		%	20.1		%	19.7		%	18.1		%	18.1		%
Tier 1 risk-based capital ratio(5)	18.0		%	18.7		%	18.3		%	16.8		%	16.7		%

Tier 1 leverage ratio(6)	15.5		%	15.6		%	14.5		%	14.0		%	13.3		%
Common equity Tier 1 capital ratio	17.1		%	17.8		%	17.4		%	15.9		%	15.8		%



(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 ratios at September 30, 2021 are preliminary and therefore subject to change.
(3) Capital ratios starting March 31, 2020 reflect election to delay for two years an estimate of CECL’s effect on regulatory capital in accordance with the interim final rule issued by U.S. banking agencies in March 2020.
(4) Total risk-based capital ratio is the ratio of total risk-based capital divided by risk-weighted assets.
(5) Tier 1 risk-based capital ratio is the ratio of Tier 1 capital divided by risk-weighted assets.
(6) 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														Nine Months Ended
	Sep 30, 2021		Jun 30, 2021		Mar 31, 2021		Dec 31, 2020		Sep 30, 2020		3Q'21 vs. 3Q'20				Sep 30, 2021		Sep 30, 2020		YTD'21 vs. YTD'20
HOME & AUTO
Purchase volume(1)	$	11,765	$	12,209	$	9,915	$	10,327	$	10,653	$	1,112	10.4	%	$	33,889	$	29,486	$	4,403	14.9	%
Period-end loan receivables	$	26,723	$	26,111	$	25,456	$	26,494	$	26,202	$	521	2.0	%	$	26,723	$	26,202	$	521	2.0	%
Average loan receivables, including held for sale	$	26,317	$	25,624	$	25,785	$	26,214	$	25,908	$	409	1.6	%	$	25,911	$	26,232	$	(321)	(1.2)	%
Average active accounts (in thousands)(3)	18,169		17,958		17,808		18,119		18,127		42		0.2	%	17,981		18,354		(373)		(2.0)	%

Interest and fees on loans	$	1,114	$	1,014	$	1,059	$	1,147	$	1,114	$	—	—	%	$	3,187	$	3,364	$	(177)	(5.3)	%
Other income	$	16	$	15	$	15	$	12	$	14	$	2	14.3	%	$	46	$	46	$	—	—	%




DIGITAL
Purchase volume(1)	$	10,980	$	10,930	$	9,340	$	11,005	$	9,038	$	1,942	21.5	%	$	31,250	$	24,871	$	6,379	25.6	%
Period-end loan receivables	$	19,636	$	19,233	$	18,907	$	20,427	$	18,922	$	714	3.8	%	$	19,636	$	18,922	$	714	3.8	%
Average loan receivables, including held for sale	$	19,286	$	18,783	$	19,437	$	19,392	$	18,807	$	479	2.5	%	$	19,168	$	19,206	$	(38)	(0.2)	%
Average active accounts (in thousands)(3)	17,655		17,258		17,318		16,898		16,440		1,215		7.4	%	17,426		16,461		965		5.9	%

Interest and fees on loans	$	973	$	891	$	903	$	976	$	915	$	58	6.3	%	$	2,767	$	2,825	$	(58)	(2.1)	%
Other income	$	(19)	$	(28)	$	(12)	$	(26)	$	(16)	$	(3)	18.8	%	$	(59)	$	(28)	$	(31)	110.7	%




DIVERSIFIED & VALUE
Purchase volume(1)	$	12,006	$	11,618	$	9,220	$	11,267	$	9,634	$	2,372	24.6	%	$	32,844	$	26,718	$	6,126	22.9	%
Period-end loan receivables	$	14,415	$	14,357	$	14,217	$	15,761	$	14,825	$	(410)	(2.8)	%	$	14,415	$	14,825	$	(410)	(2.8)	%
Average loan receivables, including held for sale	$	14,328	$	14,101	$	14,574	$	15,024	$	14,919	$	(591)	(4.0)	%	$	14,333	$	15,959	$	(1,626)	(10.2)	%
Average active accounts (in thousands)(3)	17,903		17,301		17,457		17,324		16,307		1,596		9.8	%	17,591		18,118		(527)		(2.9)	%

Interest and fees on loans	$	780	$	729	$	789	$	822	$	809	$	(29)	(3.6)	%	$	2,298	$	2,706	$	(408)	(15.1)	%
Other income	$	(8)	$	(2)	$	5	$	20	$	38	$	(46)	(121.1)	%	$	(5)	$	70	$	(75)	(107.1)	%




HEALTH & WELLNESS
Purchase volume(1)	$	3,024	$	2,988	$	2,648	$	2,676	$	2,738	$	286	10.4	%	$	8,660	$	7,349	$	1,311	17.8	%
Period-end loan receivables	$	9,879	$	9,515	$	9,317	$	9,580	$	9,368	$	511	5.5	%	$	9,879	$	9,368	$	511	5.5	%
Average loan receivables, including held for sale	$	9,654	$	9,334	$	9,442	$	9,476	$	9,245	$	409	4.4	%	$	9,477	$	9,629	$	(152)	(1.6)	%
Average active accounts (in thousands)(3)	5,707		5,585		5,706		5,724		5,708		(1)		—	%	5,673		6,018		(345)		(5.7)	%

Interest and fees on loans	$	587	$	523	$	558	$	589	$	552	$	35	6.3	%	$	1,668	$	1,684	$	(16)	(1.0)	%
Other income	$	41	$	36	$	40	$	27	$	32	$	9	28.1	%	$	117	$	80	$	37	46.3	%


LIFESTYLE
Purchase volume(1)	$	1,298	$	1,405	$	1,154	$	1,383	$	1,267	$	31	2.4	%	$	3,857	$	3,550	$	307	8.6	%
Period-end loan receivables	$	5,234	$	5,158	$	4,988	$	5,098	$	4,842	$	392	8.1	%	$	5,234	$	4,842	$	392	8.1	%
Average loan receivables, including held for sale	$	5,185	$	5,050	$	5,003	$	4,920	$	4,771	$	414	8.7	%	$	5,080	$	4,662	$	418	9.0	%
Average active accounts (in thousands)(3)	2,465		2,442		2,573		2,536		2,404		61		2.5	%	2,500		2,569		(69)		(2.7)	%

Interest and fees on loans	$	187	$	182	$	181	$	187	$	180	$	7	3.9	%	$	550	$	547	$	3	0.5	%
Other income	$	6	$	6	$	5	$	6	$	5	$	1	20.0	%	$	17	$	14	$	3	21.4	%


CORP, OTHER(4)
Purchase volume(1)(2)	$	2,839	$	2,971	$	2,472	$	3,216	$	2,683	$	156	5.8	%	$	8,282	$	7,236	$	1,046	14.5	%
Period-end loan receivables(5)	$	501	$	4,000	$	3,973	$	4,507	$	4,362	$	(3,861)	(88.5)	%	$	501	$	4,362	$	(3,861)	(88.5)	%
Average loan receivables, including held for sale	$	3,944	$	3,929	$	4,117	$	4,426	$	4,355	$	(411)	(9.4)	%	$	3,996	$	4,680	$	(684)	(14.6)	%
Average active accounts (in thousands)(2)(3)	5,290		5,266		5,418		5,660		5,284		6		0.1	%	5,329		5,726		(397)		(6.9)	%

Interest and fees on loans	$	246	$	228	$	242	$	260	$	251	$	(5)	(2.0)	%	$	716	$	843	$	(127)	(15.1)	%
Other income	$	58	$	62	$	78	$	43	$	58	$	—	—	%	$	198	$	141	$	57	40.4	%


TOTAL SYF
Purchase volume(1)(2)	$	41,912	$	42,121	$	34,749	$	39,874	$	36,013	$	5,899	16.4	%	$	118,782	$	99,210	$	19,572	19.7	%
Period-end loan receivables(5)	$	76,388	$	78,374	$	76,858	$	81,867	$	78,521	$	(2,133)	(2.7)	%	$	76,388	$	78,521	$	(2,133)	(2.7)	%
Average loan receivables, including held for sale	$	78,714	$	76,821	$	78,358	$	79,452	$	78,005	$	709	0.9	%	$	77,965	$	80,368	$	(2,403)	(3.0)	%
Average active accounts (in thousands)(2)(3)	67,189		65,810		66,280		66,261		64,270		2,919		4.5	%	66,500		67,246		(746)		(1.1)	%

Interest and fees on loans	$	3,887	$	3,567	$	3,732	$	3,981	$	3,821	$	66	1.7	%	$	11,186	$	11,969	$	(783)	(6.5)	%
Other income	$	94	$	89	$	131	$	82	$	131	$	(37)	(28.2)	%	$	314	$	323	$	(9)	(2.8)	%



(1) 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.
(2) Includes activity and balances associated with loan receivables held for sale.
(3) Active accounts represent credit card or installment loan accounts on which there has been a purchase, payment or outstanding balance in the current month.
(4) Includes activity and balances associated with our program agreement with Gap Inc. except where noted, which is scheduled to expire in Q2 2022.
(5) Reflects the reclassification of $3.5 billion of loan receivables held for sale in Q3 2021.


SYNCHRONY FINANCIAL
RECONCILIATION OF NON-GAAP MEASURES AND CALCULATIONS OF REGULATORY MEASURES(1)
(unaudited, $ in millions, except per share statistics)
	Quarter Ended
	Sep 30, 2021		Jun 30, 2021		Mar 31, 2021		Dec 31, 2020		Sep 30, 2020
COMMON EQUITY AND REGULATORY CAPITAL MEASURES(2)
GAAP Total equity	$	13,936	$	14,197	$	13,439	$	12,701	$	12,099
Less: Preferred stock	(734)		(734)		(734)		(734)		(734)
Less: Goodwill	(1,105)		(1,105)		(1,104)		(1,078)		(1,078)
Less: Intangible assets, net	(1,090)		(1,098)		(1,169)		(1,125)		(1,091)
Tangible common equity	$	11,007	$	11,260	$	10,432	$	9,764	$	9,196
Add: CECL transition amount	2,274		2,376		2,595		2,686		2,656



Adjustments for certain deferred tax liabilities and certain items in accumulated comprehensive income (loss)	299		301		354		341		305
Common equity Tier 1	$	13,580	$	13,937	$	13,381	$	12,791	$	12,157
Preferred stock	734		734		734		734		734
Tier 1 capital	$	14,314	$	14,671	$	14,115	$	13,525	$	12,891

Add: Allowance for credit losses includible in risk-based capital	1,052		1,039		1,031		1,079		1,034
Total Risk-based capital	$	15,366	$	15,710	$	15,146	$	14,604	$	13,925

ASSET MEASURES(2)
Total average assets	$	91,948	$	93,389	$	96,455	$	95,965	$	96,340
Adjustments for:
Add: CECL transition amount	2,274		2,376		2,595		2,686		2,656
Disallowed goodwill and other disallowed intangible assets (net of related deferred tax liabilities) and other	(1,960)		(1,965)		(1,987)		(1,924)		(1,906)

Total assets for leverage purposes	$	92,262	$	93,800	$	97,063	$	96,727	$	97,090


Risk-weighted assets	$	79,597	$	78,281	$	76,965	$	80,561	$	76,990

CECL FULLY PHASED-IN CAPITAL MEASURES
Tier 1 capital	$	14,314	$	14,671	$	14,115	$	13,525	$	12,891
Less: CECL transition adjustment	(2,274)		(2,376)		(2,595)		(2,686)		(2,656)
Tier 1 capital (CECL fully phased-in)	$	12,040	$	12,295	$	11,520	$	10,839	$	10,235
Add: Allowance for credit losses	8,616		9,023		9,901		10,265		10,146
Tier 1 capital (CECL fully phased-in) + Reserves for credit losses	$	20,656	$	21,318	$	21,421	$	21,104	$	20,381

Risk-weighted assets	$	79,597	$	78,281	$	76,965	$	80,561	$	76,990
Less: CECL transition adjustment	(2,065)		(2,166)		(2,386)		(2,477)		(2,447)
Risk-weighted assets (CECL fully phased-in)	$	77,532	$	76,115	$	74,579	$	78,084	$	74,543

TANGIBLE COMMON EQUITY PER SHARE
GAAP book value per share	$	24.13	$	23.48	$	21.86	$	20.49	$	19.47
Less: Goodwill	(2.02)		(1.93)		(1.90)		(1.85)		(1.85)
Less: Intangible assets, net	(1.99)		(1.91)		(2.01)		(1.92)		(1.87)
Tangible common equity per share	$	20.12	$	19.64	$	17.95	$	16.72	$	15.75

(1) Regulatory measures at September 30, 2021 are presented on an estimated basis.
(2) Capital ratios starting March 31, 2020 reflect election to delay for two years an estimate of CECL’s effect on regulatory capital in accordance with the interim final rule issued by U.S. banking agencies in March 2020.

Synchrony Financial (SYF) 8-KResults of Operations and Financial Condition