Synchrony Financial 8K Results of Operations and Financial Condition | SYF 17 Jul 24

Exhibit 99.2


SYNCHRONY FINANCIAL
FINANCIAL SUMMARY
(unaudited, in millions, except per share statistics)
	Quarter Ended														Six Months Ended
	Jun 30, 2024		Mar 31, 2024		Dec 31, 2023		Sep 30, 2023		Jun 30, 2023		2Q'24 vs. 2Q'23				Jun 30, 2024		Jun 30, 2023		YTD'24 vs. YTD'23
EARNINGS
Net interest income	$	4,405	$	4,405	$	4,466	$	4,362	$	4,120	$	285	6.9	%	$	8,810	$	8,171	$	639	7.8	%
Retailer share arrangements	(810)		(764)		(878)		(979)		(887)		77		(8.7)	%	(1,574)		(1,804)		230		(12.7)	%
Other income	117		1,157		71		92		61		56		91.8	%	1,274		126		1,148		NM
Net revenue	3,712		4,798		3,659		3,475		3,294		418		12.7	%	8,510		6,493		2,017		31.1	%
Provision for credit losses	1,691		1,884		1,804		1,488		1,383		308		22.3	%	3,575		2,673		902		33.7	%
Other expense	1,177		1,206		1,316		1,154		1,169		8		0.7	%	2,383		2,288		95		4.2	%
Earnings before provision for income taxes	844		1,708		539		833		742		102		13.7	%	2,552		1,532		1,020		66.6	%
Provision for income taxes	201		415		99		205		173		28		16.2	%	616		362		254		70.2	%
Net earnings	$	643	$	1,293	$	440	$	628	$	569	$	74	13.0	%	$	1,936	$	1,170	$	766	65.5	%
Net earnings available to common stockholders	$	624	$	1,282	$	429	$	618	$	559	$	65	11.6	%	$	1,906	$	1,149	$	757	65.9	%



COMMON SHARE STATISTICS
Basic EPS	$	1.56	$	3.17	$	1.04	$	1.49	$	1.32	$	0.24	18.2	%	$	4.74	$	2.74	$	2.00	73.0	%
Diluted EPS	$	1.55	$	3.14	$	1.03	$	1.48	$	1.32	$	0.23	17.4	%	$	4.70	$	2.73	$	1.97	72.2	%

Dividend declared per share	$	0.25	$	0.25	$	0.25	$	0.25	$	0.23	$	0.02	8.7	%	$	0.50	$	0.46	$	0.04	8.7	%
Common stock price	$	47.19	$	43.12	$	38.19	$	30.57	$	33.92	$	13.27	39.1	%	$	47.19	$	33.92	$	13.27	39.1	%
Book value per share	$	36.24	$	35.03	$	32.36	$	31.50	$	30.25	$	5.99	19.8	%	$	36.24	$	30.25	$	5.99	19.8	%
Tangible common equity per share(1)	$	31.05	$	30.36	$	27.59	$	27.18	$	25.89	$	5.16	19.9	%	$	31.05	$	25.89	$	5.16	19.9	%

Beginning common shares outstanding	401.4		406.9		413.8		418.1		428.4		(27.0)		(6.3)	%	406.9		438.2		(31.3)		(7.1)	%
Issuance of common shares	—		—		—		—		—		—		NM		—		—		—		NM
Stock-based compensation	0.6		2.0		0.4		0.2		0.2		0.4		200.0	%	2.6		1.7		0.9		52.9	%
Shares repurchased	(6.9)		(7.5)		(7.3)		(4.5)		(10.5)		3.6		(34.3)	%	(14.4)		(21.8)		7.4		(33.9)	%
Ending common shares outstanding	395.1		401.4		406.9		413.8		418.1		(23.0)		(5.5)	%	395.1		418.1		(23.0)		(5.5)	%

Weighted average common shares outstanding	399.3		404.7		411.9		416.0		422.7		(23.4)		(5.5)	%	402.0		418.9		(16.9)		(4.0)	%
Weighted average common shares outstanding (fully diluted)	402.6		408.2		414.6		418.4		424.2		(21.6)		(5.1)	%	405.4		421.1		(15.7)		(3.7)	%

(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																			Six Months Ended
	Jun 30, 2024			Mar 31, 2024			Dec 31, 2023			Sep 30, 2023			Jun 30, 2023			2Q'24 vs. 2Q'23				Jun 30, 2024			Jun 30, 2023			YTD'24 vs. YTD'23
PERFORMANCE METRICS
Return on assets(1)	2.2		%	4.4		%	1.5		%	2.3		%	2.1		%			0.1	%	3.3		%	2.2		%			1.1	%
Return on equity(2)	16.7		%	35.6		%	12.4		%	18.1		%	17.0		%			(0.3)	%	25.8		%	17.6		%			8.2	%
Return on tangible common equity(3)	20.2		%	43.6		%	14.7		%	21.9		%	20.6		%			(0.4)	%	31.6		%	22.5		%			9.1	%

Net interest margin(4)	14.46		%	14.55		%	15.10		%	15.36		%	14.94		%			(0.48)	%	14.50		%	15.08		%			(0.58)	%
Net revenue as a % of average loan receivables, including held for sale	14.71		%	19.11		%	14.56		%	14.33		%	14.29		%			0.42	%	16.91		%	14.29		%			2.6	%
Efficiency ratio(5)	31.7		%	25.1		%	36.0		%	33.2		%	35.5		%			(3.8)	%	28.0		%	35.2		%			(7.2)	%
Other expense as a % of average loan receivables, including held for sale	4.66		%	4.80		%	5.24		%	4.76		%	5.07		%			(0.41)	%	4.73		%	5.03		%			(0.30)	%
Effective income tax rate	23.8		%	24.3		%	18.4		%	24.6		%	23.3		%			0.5	%	24.1		%	23.6		%			0.5	%


CREDIT QUALITY METRICS
Net charge-offs as a % of average loan receivables, including held for sale	6.42		%	6.31		%	5.58		%	4.60		%	4.75		%			1.67	%	6.37		%	4.62		%			1.75	%
30+ days past due as a % of period-end loan receivables(6)	4.47		%	4.74		%	4.74		%	4.40		%	3.84		%			0.63	%	4.47		%	3.84		%			0.63	%
90+ days past due as a % of period-end loan receivables(6)	2.19		%	2.42		%	2.28		%	2.06		%	1.77		%			0.42	%	2.19		%	1.77		%			0.42	%
Net charge-offs	$	1,621		$	1,585		$	1,402		$	1,116		$	1,096		$	525	47.9	%	$	3,206		$	2,102		$	1,104	52.5	%
Loan receivables delinquent over 30 days(6)	$	4,574		$	4,820		$	4,885		$	4,304		$	3,641		$	933	25.6	%	$	4,574		$	3,641		$	933	25.6	%
Loan receivables delinquent over 90 days(6)	$	2,244		$	2,459		$	2,353		$	2,020		$	1,677		$	567	33.8	%	$	2,244		$	1,677		$	567	33.8	%

Allowance for credit losses (period-end)	$	10,982		$	10,905		$	10,571		$	10,176		$	9,804		$	1,178	12.0	%	$	10,982		$	9,804		$	1,178	12.0	%
Allowance coverage ratio(7)	10.74		%	10.72		%	10.26		%	10.40		%	10.34		%			0.40	%	10.74		%	10.34		%			0.40	%

BUSINESS METRICS
Purchase volume(8)	$	46,846		$	42,387		$	49,339		$	47,006		$	47,276		$	(430)	(0.9)	%	$	89,233		$	88,833		$	400	0.5	%
Period-end loan receivables	$	102,284		$	101,733		$	102,988		$	97,873		$	94,801		$	7,483	7.9	%	$	102,284		$	94,801		$	7,483	7.9	%
Credit cards	$	94,091		$	93,736		$	97,043		$	92,078		$	89,299		$	4,792	5.4	%	$	94,091		$	89,299		$	4,792	5.4	%
Consumer installment loans	$	6,072		$	5,957		$	3,977		$	3,784		$	3,548		$	2,524	71.1	%	$	6,072		$	3,548		$	2,524	71.1	%
Commercial credit products	$	2,003		$	1,912		$	1,839		$	1,879		$	1,826		$	177	9.7	%	$	2,003		$	1,826		$	177	9.7	%
Other	$	118		$	128		$	129		$	132		$	128		$	(10)	(7.8)	%	$	118		$	128		$	(10)	(7.8)	%
Average loan receivables, including held for sale	$	101,478		$	100,957		$	99,683		$	96,230		$	92,489		$	8,989	9.7	%	$	101,218		$	91,656		$	9,562	10.4	%
Period-end active accounts (in thousands)(9)	70,991			70,754			73,484			70,137			70,269			722		1.0	%	70,991			70,269			722		1.0	%
Average active accounts (in thousands)(9)	70,974			71,667			71,526			70,308			69,517			1,457		2.1	%	71,402			69,637			1,765		2.5	%

LIQUIDITY
Liquid assets
Cash and equivalents	$	18,632		$	20,021		$	14,259		$	15,643		$	12,706		$	5,926	46.6	%	$	18,632		$	12,706		$	5,926	46.6	%
Total liquid assets	$	20,051		$	21,929		$	16,808		$	17,598		$	16,448		$	3,603	21.9	%	$	20,051		$	16,448		$	3,603	21.9	%
Undrawn credit facilities
Undrawn credit facilities	$	2,950		$	2,950		$	2,950		$	2,950		$	2,950		$	—	—	%	$	2,950		$	2,950		$	—	—	%
Total liquid assets and undrawn credit facilities(10)	$	23,001		$	24,879		$	19,758		$	20,548		$	19,398		$	3,603	18.6	%	$	23,001		$	19,398		$	3,603	18.6	%
Liquid assets % of total assets	16.64		%	18.10		%	14.31		%	15.58		%	15.13		%			1.51	%	16.64		%	15.13		%			1.51	%
Liquid assets including undrawn credit facilities % of total assets	19.09		%	20.53		%	16.82		%	18.19		%	17.85		%			1.24	%	19.09		%	17.85		%			1.24	%



(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) Active accounts represent credit card or installment loan accounts on which there has been a purchase, payment or outstanding balance in the current month.
(10) Excludes available borrowing capacity related to unencumbered assets.


SYNCHRONY FINANCIAL
STATEMENTS OF EARNINGS
(unaudited, $ in millions)
	Quarter Ended														Six Months Ended
	Jun 30, 2024		Mar 31, 2024		Dec 31, 2023		Sep 30, 2023		Jun 30, 2023		2Q'24 vs. 2Q'23				Jun 30, 2024		Jun 30, 2023		YTD'24 vs. YTD'23
Interest income:
Interest and fees on loans	$	5,301	$	5,293	$	5,323	$	5,151	$	4,812	$	489	10.2	%	$	10,594	$	9,428	$	1,166	12.4	%
Interest on cash and debt securities	281		275		226		203		209		72		34.4	%	556		379		177		46.7	%
Total interest income	5,582		5,568		5,549		5,354		5,021		561		11.2	%	11,150		9,807		1,343		13.7	%

Interest expense:
Interest on deposits	967		954		878		800		717		250		34.9	%	1,921		1,274		647		50.8	%
Interest on borrowings of consolidated securitization entities	110		105		99		86		78		32		41.0	%	215		155		60		38.7	%
Interest on senior unsecured notes	100		104		106		106		106		(6)		(5.7)	%	204		207		(3)		(1.4)	%

Total interest expense	1,177		1,163		1,083		992		901		276		30.6	%	2,340		1,636		704		43.0	%

Net interest income	4,405		4,405		4,466		4,362		4,120		285		6.9	%	8,810		8,171		639		7.8	%

Retailer share arrangements	(810)		(764)		(878)		(979)		(887)		77		(8.7)	%	(1,574)		(1,804)		230		(12.7)	%


Provision for credit losses	1,691		1,884		1,804		1,488		1,383		308		22.3	%	3,575		2,673		902		33.7	%
Net interest income, after retailer share arrangements and provision for credit losses	1,904		1,757		1,784		1,895		1,850		54		2.9	%	3,661		3,694		(33)		(0.9)	%

Other income:
Interchange revenue	263		241		270		267		262		1		0.4	%	504		494		10		2.0	%
Protection product revenue	125		141		139		131		125		—		—	%	266		240		26		10.8	%
Loyalty programs	(346)		(319)		(369)		(358)		(345)		(1)		0.3	%	(665)		(643)		(22)		3.4	%
Other	75		1,094		31		52		19		56		294.7	%	1,169		35		1,134		NM
Total other income	117		1,157		71		92		61		56		91.8	%	1,274		126		1,148		NM

Other expense:
Employee costs	434		496		538		444		451		(17)		(3.8)	%	930		902		28		3.1	%
Professional fees	236		220		228		219		209		27		12.9	%	456		395		61		15.4	%
Marketing and business development	129		125		138		125		133		(4)		(3.0)	%	254		264		(10)		(3.8)	%
Information processing	207		186		190		177		179		28		15.6	%	393		345		48		13.9	%
Other	171		179		222		189		197		(26)		(13.2)	%	350		382		(32)		(8.4)	%
Total other expense	1,177		1,206		1,316		1,154		1,169		8		0.7	%	2,383		2,288		95		4.2	%

Earnings before provision for income taxes	844		1,708		539		833		742		102		13.7	%	2,552		1,532		1,020		66.6	%
Provision for income taxes	201		415		99		205		173		28		16.2	%	616		362		254		70.2	%
Net earnings	$	643	$	1,293	$	440	$	628	$	569	$	74	13.0	%	$	1,936	$	1,170	$	766	65.5	%

Net earnings available to common stockholders	$	624	$	1,282	$	429	$	618	$	559	$	65	11.6	%	$	1,906	$	1,149	$	757	65.9	%


SYNCHRONY FINANCIAL
STATEMENTS OF FINANCIAL POSITION
(unaudited, $ in millions)
	Quarter Ended
	Jun 30, 2024		Mar 31, 2024		Dec 31, 2023		Sep 30, 2023		Jun 30, 2023		Jun 30, 2024 vs. Jun 30, 2023
Assets
Cash and equivalents	$	18,632	$	20,021	$	14,259	$	15,643	$	12,706	$	5,926	46.6	%
Debt securities	2,693		3,005		3,799		2,882		4,294		(1,601)		(37.3)	%
Loan receivables:
Unsecuritized loans held for investment	82,144		81,642		81,554		78,470		75,532		6,612		8.8	%
Restricted loans of consolidated securitization entities	20,140		20,091		21,434		19,403		19,269		871		4.5	%
Total loan receivables	102,284		101,733		102,988		97,873		94,801		7,483		7.9	%
Less: Allowance for credit losses	(10,982)		(10,905)		(10,571)		(10,176)		(9,804)		(1,178)		12.0	%
Loan receivables, net	91,302		90,828		92,417		87,697		84,997		6,305		7.4	%

Goodwill	1,274		1,073		1,018		1,105		1,105		169		15.3	%
Intangible assets, net	776		800		815		680		717		59		8.2	%
Other assets	5,812		5,446		4,915		4,932		4,878		934		19.1	%
Assets held for sale	—		—		256		—		—		—		NM
Total assets	$	120,489	$	121,173	$	117,479	$	112,939	$	108,697	$	11,792	10.8	%

Liabilities and Equity
Deposits:
Interest-bearing deposit accounts	$	82,708	$	83,160	$	80,789	$	77,669	$	75,344	$	7,364	9.8	%
Non-interest-bearing deposit accounts	392		394		364		397		421		(29)		(6.9)	%
Total deposits	83,100		83,554		81,153		78,066		75,765		7,335		9.7	%
Borrowings:
Borrowings of consolidated securitization entities	7,517		8,016		7,267		6,519		5,522		1,995		36.1	%

Senior and Subordinated unsecured notes	8,120		8,117		8,715		8,712		8,709		(589)		(6.8)	%

Total borrowings	15,637		16,133		15,982		15,231		14,231		1,406		9.9	%
Accrued expenses and other liabilities	6,212		6,204		6,334		5,875		5,321		891		16.7	%
Liabilities held for sale	—		—		107		—		—		—		NM
Total liabilities	104,949		105,891		103,576		99,172		95,317		9,632		10.1	%
Equity:
Preferred stock	1,222		1,222		734		734		734		488		66.5	%
Common stock	1		1		1		1		1		—		—	%
Additional paid-in capital	9,793		9,768		9,775		9,750		9,727		66		0.7	%
Retained earnings	20,310		19,790		18,662		18,338		17,828		2,482		13.9	%
Accumulated other comprehensive income (loss)	(73)		(69)		(68)		(96)		(96)		23		(24.0)	%
Treasury stock	(15,713)		(15,430)		(15,201)		(14,960)		(14,814)		(899)		6.1	%
Total equity	15,540		15,282		13,903		13,767		13,380		2,160		16.1	%
Total liabilities and equity	$	120,489	$	121,173	$	117,479	$	112,939	$	108,697	$	11,792	10.8	%


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

	Quarter Ended
	Jun 30, 2024						Mar 31, 2024						Dec 31, 2023						Sep 30, 2023						Jun 30, 2023
			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	$	18,337	$	249	5.46	%	$	17,405	$	236	5.45	%	$	13,762	$	188	5.42	%	$	12,753	$	172	5.35	%	$	14,198	$	178	5.03	%
Securities available for sale	2,731		32		4.71	%	3,432		39		4.57	%	3,895		38		3.87	%	3,706		31		3.32	%	3,948		31		3.15	%

Loan receivables, including held for sale:
Credit cards	93,267		5,013		21.62	%	94,216		5,096		21.75	%	93,744		5,162		21.85	%	90,587		5,003		21.91	%	87,199		4,679		21.52	%
Consumer installment loans	6,085		243		16.06	%	4,734		149		12.66	%	3,875		116		11.88	%	3,656		108		11.72	%	3,359		94		11.22	%
Commercial credit products	2,001		43		8.64	%	1,878		45		9.64	%	1,934		42		8.62	%	1,861		38		8.10	%	1,808		36		7.99	%
Other	125		2		6.44	%	129		3		9.35	%	130		3		9.16	%	126		2		6.30	%	123		3		9.78	%
Total loan receivables, including held for sale	101,478		5,301		21.01	%	100,957		5,293		21.09	%	99,683		5,323		21.19	%	96,230		5,151		21.24	%	92,489		4,812		20.87	%
Total interest-earning assets	122,546		5,582		18.32	%	121,794		5,568		18.39	%	117,340		5,549		18.76	%	112,689		5,354		18.85	%	110,635		5,021		18.20	%

Non-interest-earning assets:
Cash and due from banks	887						944						886						964						976
Allowance for credit losses	(10,878)						(10,677)						(10,243)						(9,847)						(9,540)
Other assets	7,309						6,973						6,616						6,529						6,330
Total non-interest-earning assets	(2,682)						(2,760)						(2,741)						(2,354)						(2,234)

Total assets	$	119,864					$	119,034					$	114,599					$	110,335					$	108,401

Liabilities
Interest-bearing liabilities:
Interest-bearing deposit accounts	$	82,749	$	967	4.70	%	$	82,598	$	954	4.65	%	$	78,892	$	878	4.42	%	$	75,952	$	800	4.18	%	$	74,812	$	717	3.84	%
Borrowings of consolidated securitization entities	7,858		110		5.63	%	7,383		105		5.72	%	6,903		99		5.69	%	6,096		86		5.60	%	5,863		78		5.34	%

Senior and Subordinated unsecured notes	8,118		100		4.95	%	8,630		104		4.85	%	8,712		106		4.83	%	8,710		106		4.83	%	8,707		106		4.88	%

Total interest-bearing liabilities	98,725		1,177		4.80	%	98,611		1,163		4.74	%	94,507		1,083		4.55	%	90,758		992		4.34	%	89,382		901		4.04	%

Non-interest-bearing liabilities
Non-interest-bearing deposit accounts	396						390						379						401						420
Other liabilities	5,221						5,419						5,652						5,418						5,164
Total non-interest-bearing liabilities	5,617						5,809						6,031						5,819						5,584

Total liabilities	104,342						104,420						100,538						96,577						94,966

Equity
Total equity	15,522						14,614						14,061						13,758						13,435

Total liabilities and equity	$	119,864					$	119,034					$	114,599					$	110,335					$	108,401
Net interest income			$	4,405					$	4,405					$	4,466					$	4,362					$	4,120

Interest rate spread(1)					13.53	%					13.64	%					14.22	%					14.51	%					14.16	%
Net interest margin(2)					14.46	%					14.55	%					15.10	%					15.36	%					14.94	%



(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)

	Six Months Ended Jun 30, 2024						Six Months Ended Jun 30, 2023
			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	$	17,871	$	485	5.46	%	$	13,287	$	318	4.83	%
Securities available for sale	3,082		71		4.63	%	4,358		61		2.82	%

Loan receivables, including held for sale:
Credit cards	93,743		10,109		21.69	%	86,555		9,176		21.38	%
Consumer installment loans	5,409		392		14.57	%	3,232		177		11.04	%
Commercial credit products	1,939		88		9.13	%	1,753		70		8.05	%
Other	127		5		7.92	%	116		5		8.69	%
Total loan receivables, including held for sale	101,218		10,594		21.05	%	91,656		9,428		20.74	%
Total interest-earning assets	122,171		11,150		18.35	%	109,301		9,807		18.09	%

Non-interest-earning assets:
Cash and due from banks	915						1,000
Allowance for credit losses	(10,777)						(9,402)
Other assets	7,141						6,229
Total non-interest-earning assets	(2,721)						(2,173)

Total assets	$	119,450					$	107,128

Liabilities
Interest-bearing liabilities:
Interest-bearing deposit accounts	$	82,674	$	1,921	4.67	%	$	73,521	$	1,274	3.49	%
Borrowings of consolidated securitization entities	7,620		215		5.67	%	6,045		155		5.17	%

Senior and subordinated unsecured notes	8,374		204		4.90	%	8,575		207		4.87	%

Total interest-bearing liabilities	98,668		2,340		4.77	%	88,141		1,636		3.74	%

Non-interest-bearing liabilities
Non-interest-bearing deposit accounts	393						415
Other liabilities	5,322						5,147
Total non-interest-bearing liabilities	5,715						5,562

Total liabilities	104,383						93,703

Equity
Total equity	15,067						13,425

Total liabilities and equity	$	119,450					$	107,128
Net interest income			$	8,810					$	8,171

Interest rate spread(1)					13.58	%					14.35	%
Net interest margin(2)					14.50	%					15.08	%

(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
	Jun 30, 2024			Mar 31, 2024			Dec 31, 2023			Sep 30, 2023			Jun 30, 2023			Jun 30, 2024 vs. Jun 30, 2023
BALANCE SHEET STATISTICS
Total common equity	$	14,318		$	14,060		$	13,169		$	13,033		$	12,646		$	1,672	13.2	%
Total common equity as a % of total assets	11.88		%	11.60		%	11.21		%	11.54		%	11.63		%			0.25	%

Tangible assets	$	118,439		$	119,300		$	115,535		$	111,154		$	106,875		$	11,564	10.8	%
Tangible common equity(1)	$	12,268		$	12,187		$	11,225		$	11,248		$	10,824		$	1,444	13.3	%
Tangible common equity as a % of tangible assets(1)	10.36		%	10.22		%	9.72		%	10.12		%	10.13		%			0.23	%
Tangible common equity per share(1)	$	31.05		$	30.36		$	27.59		$	27.18		$	25.89		$	5.16	19.9	%

REGULATORY CAPITAL RATIOS(2)(3)
	Basel III - CECL Transition
Total risk-based capital ratio(4)	15.8		%	15.8		%	14.9		%	15.7		%	15.7		%
Tier 1 risk-based capital ratio(5)	13.8		%	13.8		%	12.9		%	13.6		%	13.6		%

Tier 1 leverage ratio(6)	12.0		%	12.0		%	11.7		%	12.2		%	12.0		%
Common equity Tier 1 capital ratio	12.6		%	12.6		%	12.2		%	12.8		%	12.8		%



(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 June 30, 2024 are preliminary and therefore subject to change.
(3) Capital ratios reflect the phase-in of an estimate of CECL’s effect on regulatory capital over a three-year transitional period beginning in the first quarter of 2022 through 2024. Capital ratios for 2024 and 2023 reflect 75% and 50%, respectively, of the phase-in of CECL effects.
(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.


SYNCHRONY FINANCIAL
PLATFORM RESULTS
(unaudited, $ in millions)
	Quarter Ended														Six Months Ended
	Jun 30, 2024		Mar 31, 2024		Dec 31, 2023		Sep 30, 2023		Jun 30, 2023		2Q'24 vs. 2Q'23				Jun 30, 2024		Jun 30, 2023		YTD'24 vs. YTD'23
HOME & AUTO
Purchase volume(1)	$	12,496	$	10,512	$	11,421	$	12,273	$	12,853	$	(357)	(2.8)	%	$	23,008	$	23,716	$	(708)	(3.0)	%
Period-end loan receivables	$	32,822	$	32,615	$	31,969	$	31,648	$	30,926	$	1,896	6.1	%	$	32,822	$	30,926	$	1,896	6.1	%
Average loan receivables, including held for sale	$	32,592	$	31,865	$	31,720	$	31,239	$	30,210	$	2,382	7.9	%	$	32,228	$	29,951	$	2,277	7.6	%
Average active accounts (in thousands)(2)	19,335		18,969		19,177		19,223		18,935		400		2.1	%	19,176		18,769		407		2.2	%

Interest and fees on loans	$	1,419	$	1,382	$	1,403	$	1,367	$	1,275	$	144	11.3	%	$	2,801	$	2,500	$	301	12.0	%
Other income	$	38	$	33	$	26	$	28	$	27	$	11	40.7	%	$	71	$	52	$	19	36.5	%




DIGITAL
Purchase volume(1)	$	13,403	$	12,628	$	15,510	$	13,808	$	13,472	$	(69)	(0.5)	%	$	26,031	$	25,733	$	298	1.2	%
Period-end loan receivables	$	27,704	$	27,734	$	28,925	$	26,685	$	25,758	$	1,946	7.6	%	$	27,704	$	25,758	$	1,946	7.6	%
Average loan receivables, including held for sale	$	27,542	$	28,081	$	27,553	$	26,266	$	25,189	$	2,353	9.3	%	$	27,812	$	25,086	$	2,726	10.9	%
Average active accounts (in thousands)(2)	20,920		21,349		21,177		20,768		20,559		361		1.8	%	21,142		20,570		572		2.8	%

Interest and fees on loans	$	1,544	$	1,567	$	1,579	$	1,530	$	1,422	$	122	8.6	%	$	3,111	$	2,785	$	326	11.7	%
Other income	$	—	$	6	$	(7)	$	(6)	$	(2)	$	2	(100.0)	%	$	6	$	(1)	$	7	NM




DIVERSIFIED & VALUE
Purchase volume(1)	$	15,333	$	14,023	$	16,987	$	15,445	$	15,356	$	(23)	(0.1)	%	$	29,356	$	28,795	$	561	1.9	%
Period-end loan receivables	$	19,516	$	19,559	$	20,666	$	18,865	$	18,329	$	1,187	6.5	%	$	19,516	$	18,329	$	1,187	6.5	%
Average loan receivables, including held for sale	$	19,360	$	19,593	$	19,422	$	18,565	$	17,935	$	1,425	7.9	%	$	19,477	$	17,825	$	1,652	9.3	%
Average active accounts (in thousands)(2)	20,253		21,032		21,038		20,410		20,346		(93)		(0.5)	%	20,691		20,652		39		0.2	%

Interest and fees on loans	$	1,165	$	1,214	$	1,204	$	1,168	$	1,091	$	74	6.8	%	$	2,379	$	2,161	$	218	10.1	%
Other income	$	(22)	$	(17)	$	(30)	$	(28)	$	(21)	$	(1)	4.8	%	$	(39)	$	(35)	$	(4)	11.4	%




HEALTH & WELLNESS
Purchase volume(1)	$	4,089	$	3,980	$	3,870	$	3,990	$	4,015	$	74	1.8	%	$	8,069	$	7,705	$	364	4.7	%
Period-end loan receivables	$	15,280	$	15,065	$	14,521	$	14,019	$	13,327	$	1,953	14.7	%	$	15,280	$	13,327	$	1,953	14.7	%
Average loan receivables, including held for sale	$	15,111	$	14,697	$	14,251	$	13,600	$	12,859	$	2,252	17.5	%	$	14,904	$	12,585	$	2,319	18.4	%
Average active accounts (in thousands)(2)	7,752		7,611		7,447		7,276		7,063		689		9.8	%	7,670		6,976		694		9.9	%

Interest and fees on loans	$	911	$	869	$	866	$	844	$	786	$	125	15.9	%	$	1,780	$	1,521	$	259	17.0	%
Other income	$	48	$	66	$	82	$	74	$	54	$	(6)	(11.1)	%	$	114	$	115	$	(1)	(0.9)	%


LIFESTYLE
Purchase volume(1)	$	1,525	$	1,244	$	1,550	$	1,490	$	1,580	$	(55)	(3.5)	%	$	2,769	$	2,882	$	(113)	(3.9)	%
Period-end loan receivables	$	6,822	$	6,604	$	6,744	$	6,483	$	6,280	$	542	8.6	%	$	6,822	$	6,280	$	542	8.6	%
Average loan receivables, including held for sale	$	6,723	$	6,631	$	6,568	$	6,383	$	6,106	$	617	10.1	%	$	6,677	$	6,013	$	664	11.0	%
Average active accounts (in thousands)(2)	2,662		2,642		2,620		2,556		2,529		133		5.3	%	2,665		2,575		90		3.5	%

Interest and fees on loans	$	258	$	255	$	255	$	249	$	232	$	26	11.2	%	$	513	$	455	$	58	12.7	%
Other income	$	6	$	8	$	7	$	8	$	7	$	(1)	(14.3)	%	$	14	$	14	$	—	—	%


CORP, OTHER
Purchase volume(1)	$	—	$	—	$	1	$	—	$	—	$	—	NM		$	—	$	2	$	(2)	(100.0)	%
Period-end loan receivables	$	140	$	156	$	163	$	173	$	181	$	(41)	(22.7)	%	$	140	$	181	$	(41)	(22.7)	%
Average loan receivables, including held for sale	$	150	$	90	$	169	$	177	$	190	$	(40)	(21.1)	%	$	120	$	196	$	(76)	(38.8)	%
Average active accounts (in thousands)(2)	52		64		67		75		85		(33)		(38.8)	%	58		95		(37)		(38.9)	%

Interest and fees on loans	$	4	$	6	$	16	$	(7)	$	6	$	(2)	(33.3)	%	$	10	$	6	$	4	66.7	%
Other income	$	47	$	1,061	$	(7)	$	16	$	(4)	$	51	NM		$	1,108	$	(19)	$	1,127	NM


TOTAL SYF
Purchase volume(1)	$	46,846	$	42,387	$	49,339	$	47,006	$	47,276	$	(430)	(0.9)	%	$	89,233	$	88,833	$	400	0.5	%
Period-end loan receivables	$	102,284	$	101,733	$	102,988	$	97,873	$	94,801	$	7,483	7.9	%	$	102,284	$	94,801	$	7,483	7.9	%
Average loan receivables, including held for sale	$	101,478	$	100,957	$	99,683	$	96,230	$	92,489	$	8,989	9.7	%	$	101,218	$	91,656	$	9,562	10.4	%
Average active accounts (in thousands)(2)	70,974		71,667		71,526		70,308		69,517		1,457		2.1	%	71,402		69,637		1,765		2.5	%

Interest and fees on loans	$	5,301	$	5,293	$	5,323	$	5,151	$	4,812	$	489	10.2	%	$	10,594	$	9,428	$	1,166	12.4	%
Other income	$	117	$	1,157	$	71	$	92	$	61	$	56	91.8	%	$	1,274	$	126	$	1,148	NM



(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) 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
	Jun 30, 2024		Mar 31, 2024		Dec 31, 2023		Sep 30, 2023		Jun 30, 2023
COMMON EQUITY AND REGULATORY CAPITAL MEASURES(2)
GAAP Total equity	$	15,540	$	15,282	$	13,903	$	13,767	$	13,380
Less: Preferred stock	(1,222)		(1,222)		(734)		(734)		(734)
Less: Goodwill	(1,274)		(1,073)		(1,105)		(1,105)		(1,105)
Less: Intangible assets, net	(776)		(800)		(839)		(680)		(717)
Tangible common equity	$	12,268	$	12,187	$	11,225	$	11,248	$	10,824
Add: CECL transition amount	573		573		1,146		1,146		1,146



Adjustments for certain deferred tax liabilities and certain items in accumulated comprehensive income (loss)	227		225		229		255		255
Common equity Tier 1	$	13,068	$	12,985	$	12,600	$	12,649	$	12,225
Preferred stock	1,222		1,222		734		734		734
Tier 1 capital	$	14,290	$	14,207	$	13,334	$	13,383	$	12,959

Add: Subordinated debt	741		741		741		741		741
Add: Allowance for credit losses includible in risk-based capital	1,407		1,399		1,389		1,322		1,282
Total Risk-based capital	$	16,438	$	16,347	$	15,464	$	15,446	$	14,982

ASSET MEASURES(2)
Total average assets	$	119,864	$	119,034	$	114,599	$	110,335	$	108,401
Adjustments for:
Add: CECL transition amount	573		573		1,146		1,146		1,146
Less: Disallowed goodwill and other disallowed intangible assets (net of related deferred tax liabilities) and other	(1,805)		(1,631)		(1,671)		(1,507)		(1,537)

Total assets for leverage purposes	$	118,632	$	117,976	$	114,074	$	109,974	$	108,010


Risk-weighted assets	$	103,718	$	103,242	$	103,460	$	98,451	$	95,546

CECL FULLY PHASED-IN CAPITAL MEASURES
Tier 1 capital	$	14,290	$	14,207	$	13,334	$	13,383	$	12,959
Less: CECL transition adjustment	(573)		(573)		(1,146)		(1,146)		(1,146)
Tier 1 capital (CECL fully phased-in)	$	13,717	$	13,634	$	12,188	$	12,237	$	11,813
Add: Allowance for credit losses	10,982		10,905		10,571		10,176		9,804
Tier 1 capital (CECL fully phased-in) + Reserves for credit losses	$	24,699	$	24,539	$	22,759	$	22,413	$	21,617

Risk-weighted assets	$	103,718	$	103,242	$	103,460	$	98,451	$	95,546
Less: CECL transition adjustment	(290)		(290)		(580)		(580)		(580)
Risk-weighted assets (CECL fully phased-in)	$	103,428	$	102,952	$	102,880	$	97,871	$	94,966

TANGIBLE COMMON EQUITY PER SHARE
GAAP book value per share	$	36.24	$	35.03	$	32.36	$	31.50	$	30.25
Less: Goodwill	(3.23)		(2.68)		(2.72)		(2.67)		(2.65)
Less: Intangible assets, net	(1.96)		(1.99)		(2.05)		(1.65)		(1.71)
Tangible common equity per share	$	31.05	$	30.36	$	27.59	$	27.18	$	25.89

(1) Regulatory measures at June 30, 2024 are preliminary and therefore subject to change.
(2) Capital ratios reflect the phase-in of an estimate of CECL’s effect on regulatory capital over a three-year transitional period beginning in the first quarter of 2022 through 2024. Capital ratios for 2024 and 2023 reflect 75% and 50%, respectively, of the phase-in of CECL effects.

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