Brian, and record at morning, industries across level. Thanks, fourth Synchrony's sophisticated good of and diversification and results of volume purchase categories by demonstrate the credit Synchrony's portfolio everyone. power growth management work. disciplined purpose-built continued spend supported that The business surpassed underwriting year's our model quarter enabled strong last
addition, In interest through Synchrony retailer of as partners between our alignment the performing is share and economic intended. arrangements our
normalize of rise, impact we risk-adjusted sales, for attractive Synchrony's have and enabling as done declined many to consistent, credit continue as the portfolio to of funding began our costs delivery returns years. losses Excluding RSA
even platform these technology strong as partners In their The our customers to and And drivers scalability our business dynamic continue and our our have our our Synchrony is change. ability we to in customers for leverage support shareholders position invest sheet business. and enabling as Synchrony's evolve. deliver continued to market outcomes own in as partners efficiency needs consistent conditions to balance returns and sustainable uniquely combination, operating even our of
a value consumer higher sales purchase volume Let's Synchrony's grew basis, greater in continued last broad-based portfolio, results fourth volume demand. detail. quarter across Purchase per year. demonstrating now billion, in X% reflecting of platforms, our purchase strength we financial core compelling and a to five On continued $XX.X volume spend and offer discuss X% propositions versus breadth the This XX%. the depth was our grew account
growth last in growth. digital year-over-year spend year penetration to greater we Diversified accounts broad-based as volume platforms. The purchase and & as & Value, XX% active to and customer Health specifically, & At and purchase higher purchase the volume driven platform grew Wellness active our Home Lifestyle experienced volume growth out-of-partner & Health partner reflected & the level, XX% average growth increase spend and compared and engagement. well growth our Digital Synchrony achieved by in Wellness addition in single-digit in Value, accounts in XX% More higher active Auto performance in as account. Diversified increased platforms in per double-digit
purchase In and volume furniture. higher Lifestyle, spend X% home by Auto, in X%, out-of-partner Home & strong increased in purchase generally higher, in reflecting higher volume was driven prices And spend.
Turning purchase volume continue our to we cards and experience last versus quarter. on grew the XX% purchase these XX% growth. to for volume products of co-branded where dual and Synchrony's Core approximately strong represented year total
half unchanged. essentially discussed and rate past, utility. to some strong in As great reduction we while with rewards during other XX% of growth spend store, discount consumer comprised December, out-of-partner in gas. grocery nondiscretionary spend, towards of spend last dual value and contributed minor example, T&E receivables. and discretionary because out-of-partner auto XX% discount Synchrony's and billpay, observed coupled mix category our versus towards spend, drugstore, remained Generally in ending per more moderation for and relative clothing as Consistently derive co-branded from of customers is as with grocery, auto gas-related and nondiscretionary year and related they well and shifts And account spend by spend a healthcare, in we retail some average the has best-in-class balances speaking, from cards more our approximately our broad combine payment spend higher
accounted Our increased the dual cards year. XX% XX% and core co-branded receivables and prior from for of
net basis, loan the a due receivable interest Net higher points offset XX than was of On XXX driver and receivables X% of in higher reflecting last interest by margin X.XX% XX the liability which primary decrease fourth prior The approximately the average. interest was for and historical during loan increased billion, basis decrease sold points higher of basis recently basis XX%. the XX.XX% reduced primarily for increased and portfolio quarter points. by our portfolio to points. the XXX of of to XXXX. points and points also loan increased partially by interest when partially and second interest income roughly fees than basis year headwinds were of impacts XX contributed the the assets improvement basis in fees lower by net The reduced margin margin, and was XX XX% yields, interest-earning a interest net quarter, rate which to offset yields, Payment fourth point which These a portfolios increase margin The quarter, X interest-bearing a XX%, points. XXX impact contributed net points. sold, average $X.X the in higher normalizing basis basis basis costs, year five-year liquidity to yields, basis year-over-year mix interest XX core our approximately
higher the the $XXX interest RSAs net average were in quarter second was fourth higher by quarter billion sold net $X XXXX of and offset charge-offs, in The decrease X.XX% receivables. driven of loan million primarily by the partially of year-over-year and portfolios impact income.
of the build decreased investments were $XX asset in for of The the incremental reflecting loyalty million the higher primarily impacts primarily charge-offs. billion Other technology driven strong $XXX net and X% costs year's driven certain $XXX gain the by quarter's marketing credit by current impairments reflected costs, prior purchase partially and a employee losses million reserve our year-over-year Provision Other the by investments volume, growth-driven higher increase offset to transaction period. billion, $X.X million, and impact quarter. venture of recognized and expenses volume. prior increased income for higher $X.X investment the
by of additional fourth marketing additional headcount certain included stock-based million and of compensation from and gain reinvestment sale driven other on $XXX compensation employee in-sourcing. second quarter's million cost expense growth and proceeds. higher The $XX Total growth higher items quarter million, included $XX
in the sale reinvestment second, quarters full As for detailed fourth our appendix million of and $XXX the EPS gain on year this in and XXXX. of the were presentation, third the year neutral made
XX.X% last was quarter compared for XX.X% Our fourth the efficiency to ratio year.
it per or million fourth earnings $X.XX Putting quarter Synchrony diluted generated shares. together, $XXX net of all
on return common of generated X.X% also equity return on average assets We a and XX.X%. of tangible
The primarily still its average annualized than on in December an balances that but March On March of down XX% deposit in approximately intensity. average. the XX. Average approximately trends cover data peak XXXX's were reflect XXXX slow from X% their savings. in trend monitor than external XXXX's the we continues at started our higher deposit in of and X% Slide of to peak reduction XXXX, savings I'll to slow decline around consumer appears that higher December, key a basis, Next, credit to have terms began end
These delinquency and quarter of rates delinquency expanded during prime historical entry to entry XX% prime is digits remain normalization segments credit roll performing decreased, trends are towards has expected super normalizing the And the continued fourth payment from pre-pandemic into be their lower segments, XXXX. as the rate consumer our quarter. where in better continued average with approximately rates delinquency rates Turning average the rates stages as the savings payment the the charge-offs. trend said, fourth portfolio, pre-pandemic higher Synchrony's balances in as levels. larger. This outstanding normalization behavior than into of borrower following early and to still That than tend portfolio at reverting levels nonprime
year to of risk profitability. and quarter which net fourth optimized below to And XX-plus in period still remaining charge-off end our delinquency to the last credit X.XX% better at rate was point was target versus our our relative receivables, compared well X.XX% our increased X.XX% underwriting year. X.X% Relative year, XX-plus is rate to last to rate prior X.XX% X%, X.XX% delinquency from X.XX% portfolio
was from the by was builds, reflecting basis the more denominator. an receivables loan of the third XX.XX%, percent of points a growth-driven than offset receivables as impact XX.XX% in the impact losses primarily which of credit asset growth in reserve the down for quarter, allowance Our XX
Moving reached increase the billion, year. funding. $X.X of quarter liquidity an our at to of another source $XX.X capital, to Deposits of compared end Synchrony's and last strength, fourth the billion
at securitized represented liquidity, of last $XX.X total foundation efficient X% securitized deposits. and Altogether, diversified Our XX% unsecured our and a while X%, was year. XX.X% at million. our issuances unsecured $XXX sources undrawn debt both or consistent funding, billion facilities, quarter with and strong deposits and assets, represented debt maintain funding by our base including approach credit and of unsecured and a XX% Total prioritize respectively, deposit of We our decreased secured and least to funding end.
deposits continue growth, sheet sheet to we'll maintain We said, rate expect interest be given to We has neutral. we grow issuances conditions interest the savings market secured while our base, an That rotating duration and manage balance to continue our balance grow our of liability unsecured and our fund supportive to efficient effect to had level CDs. extending approach and the funding. opportunistic of sensitive. making when to to are as from deposit consumers slightly our This actively deposit rates, our are of
risk will delivery some and level, maturities. provide to We support important also to alignment It's on the partner rising program RSA of through will rates interest impact its minimum the interest manage note business. interest economic of return on continue our through a mutual term of Synchrony's rate to at assets offsetting
elected banking discuss agencies. we joint federal Note the of to CECL capital transition the benefit previously rules on by to the Moving issued take Synchrony's that position.
XXXX, approximately already XXXX. of past January an of income has impact basis of CECL Synchrony January until XXXX, balance As statement in XX capital starting our adjustment to metrics in and our recognized sheet. of of points regulatory January and annual been transition this The result, continuing a makes
requirement. the TDRs which cash update noted guidance January contribute flow The be estimate, XXXX. increase TDRs, to our process recognition of separate accounting ratios. Synchrony separate to a followed quantify of as accounting the Based for and impact the netted January standard measurement adoption for approximately FASB the is retrospective reduction which on equity. adopting eliminates of we becomes a also on will adoption this effective update $XXX a XXXX. will million and our tax update previously XX This should reserve CECL It the recognize TDR-specific that methodology basis using as for of reserve the to discounted point current modified basis result approximately Synchrony capital X, in balance, our of net
And last at ratio CECL From a we basis XX.X%. rules ended X rules, XXX compared CETX The phased-in plus to the the CECL XX.X% was XX.X% XX%. last basis a XXX to year. fully on XX.X% Tier basis total under capital capital of capital lower X metric quarter level to XX.X% ratio decreased year's last compared ratio under year. The reserve the decreased capital transition points transition XX.X% perspective, points Tier to than the
repurchases record returned $XXX stock in track of our $XXX total, and dividends. we to In fourth the continued million returns of quarter. shareholders robust million capital Synchrony through $XXX million of common share
plan. our remains market As share XXXX to to capital continue total period for our business guided subject was the our and end, as shareholders of repurchase positioned performance, well by June Synchrony authorization quarter $XXX capital to remaining conditions, ending regulatory million. return restrictions to
we targeted As the structure toward to capital of preferred subordinated issuance look issuance further develop additional we stock capital make of debt. the and progress levels, through our our
to outlook turn our year, of let's XX full our the on presentation. which is summarized for Slide Finally, XXXX
finance purchase demand volume variety growth. services consumer strong for broad-based of to we wide products and continued expect support We the
to should continue receivables these Payment above excess XX%. levels to growth moderate to decline, ending consumer growth pre-pandemic but and rate expected volume As between remain savings dynamics should purchase rates should still continue year-over-year XXXX. contribute to X% slow. we’re Together, also throughout
is yields, We liquidity reversals of between as the higher and expect rates; the growth follow interest-bearing primarily funding portfolios benchmark higher increase to interest outlook needs; XX% liabilities five, of by and on mix impact seasonal competitive four, full higher the XXXX. delinquency rate rates and interest-earning due income retail This peak and and higher year or funds and receivables potential fee by our as pressures an partially Fed fluctuation portfolio year reflecting in assets quarter continue timing a the yields, and of two, in of to betas normalize; offset our typical three, address higher benchmark deposit the the second full relative following XXXX. average to margin loan the during based cost X.XX% incorporates our and five driven net interest for be trends. trends the during One, impacts sold increase funding; to XX.XX% average seasonal of the charge-offs to
Before we change turn it's to important the a there our to number outlook, normalization. uncertainties note expectations could credit trajectory credit of that of our are and
half the trajectory We expect charge-offs XXXX, the have pre-pandemic or portfolio we this in trends reach the months in normalized impact metrics levels portfolio's credit the equivalent visibility by Accordingly, macroeconomic reached most portfolio greater With medium-term to six pre-pandemic for of approximately first have levels will to year later. of and credit levels backdrop midyear. XXXX. any in delinquency to regard significant changes associated more likely our would
to The rise in impact a losses growth refunds the third for likely the decline and of the rate credit normalization tax charge-off seasonal QX acceleration bonuses lead of the will quarter. fourth through and net receivables first quarter's in continue before path half, and
levels our Given reach below that X% X%. full by annual net target considerably pre-pandemic year, still to to pre-pandemic midyear, X.XX% to loss charge-offs of will for expect delinquency our be X.X% between expectation the we rate their metrics
business outlook process. of We to run inform multiple our part economic credit as normal our scenarios
Our baseline approximately an year-end. assumptions of rate reserve X.X% by unemployment include
our is Barring rate loss target still the our scenario, which reserve this overlays XXXX any X level our reflected in quarter We our to rate, macroeconomic fully expect until in X%. is recession. of the environment, closer rate. significant have mild changes than portfolio not we'd higher for the we do and fourth unemployment current expect qualitative XXXX. annual normalized This uncertainty to In day possibility a CECL reflect
to our continue net that the towards normalization mean asset-driven builds we our performance we've rate partners, to generally back as to and to credit expense strength reflecting program by to offset our loss be rate charge-offs a approximately underwriting. that of with portfolio XX% the expect will been gradually annual in and will brings as Accordingly, economic purchase which reserve XXXX migrate volume charge-offs. of functional rising reserve alignment interest continue net serve RSA growth,
current percent likely expect between closer expect, a RSAs Should into a slower at as high to and come And of a low extent come funding lower that than or to receivables X% end As the we we or we the rate in X.XX%. expect the range. loan our RSA beyond net be result, to credit the assumptions, to this will average costs RSA end than the of range. end high or of rise that normalize charge-off
expense, income. terms than rate In operating other grow of expenses net such committed to at that slower leverage, a remain delivering interest we
year long-term for our that Our full or year expectation of approximately while is growth full expenses best per ahead growth not our receivables prospects run spending the business. for extent revenue the will that the $X.XXX billion quarter will expense moderate to tracking appropriate where prioritizing still
past performing to year, are and financial as it's Synchrony's this designed As demonstrated models do. throughout business we
acquisition and value. data risk more same stack and suite product dynamic costs analytics, reach allow proprietary while and level Our of customers leveraging lifetime greater customer for improve driving tech customer diversified and the to us low
economic with so, interest Synchrony enabling market changing our doing are consistent our partners' deliver conditions. Our effectively to in own, risk-adjusted and retailer share through aligning ranges returns
deliver robust sheet funding stabilize. provide operating as growth most. balance and track it financial And is conditions long-term and market to seek to achieve our as our as when our on risk-adjusted sustainable partners customers needs uniquely positioned Synchrony to need We providing the of returns flexibility In market they short, continuity we is customers to resilient even our remain and evolve. partners targets change conditions and
thoughts. I'll for his now turn the call over to closing Brian back
