Exhibit 99.2


SYNCHRONY FINANCIAL
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL SUMMARY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(unaudited, in millions, except per share statistics)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
 
 
Twelve months ended
 
 
 
 
Dec 31,
2014
 
Sep 30,
2014
 
Jun 30,
2014
 
Mar 31,
2014
 
Dec 31,
2013
 
4Q'14 vs. 4Q'13
 
Dec 31,
2014
 
Dec 31,
2013
 
YTD'14 vs. YTD'13
EARNINGS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income
$
2,978

 
$
2,879

 
$
2,720

 
$
2,743

 
$
2,849

 
$
129

4.5
 %
 
$
11,320

 
$
10,571

 
$
749

7.1
 %
Retailer share arrangements
(698
)
 
(693
)
 
(590
)
 
(594
)
 
(662
)
 
(36
)
5.4
 %
 
(2,575
)
 
(2,373
)
 
(202
)
8.5
 %
Net interest income, after retailer share arrangements
2,280

 
2,186

 
2,130

 
2,149

 
2,187

 
93

4.3
 %
 
8,745

 
8,198

 
547

6.7
 %
Provision for loan losses
797

 
675

 
681

 
764

 
818

 
(21
)
(2.6
)%
 
2,917

 
3,072

 
(155
)
(5.0
)%
Net interest income, after retailer share arrangements and provision for loan losses
1,483

 
1,511

 
1,449

 
1,385

 
1,369

 
114

8.3
 %
 
5,828

 
5,126

 
702

13.7
 %
Other income
162

 
96

 
112

 
115

 
130

 
32

24.6
 %
 
485

 
500

 
(15
)
(3.0
)%
Other expense
792

 
728

 
797

 
610

 
807

 
(15
)
(1.9
)%
 
2,927

 
2,484

 
443

17.8
 %
Earnings before provision for income taxes
853

 
879

 
764

 
890

 
692

 
161

23.3
 %
 
3,386

 
3,142

 
244

7.8
 %
Provision for income taxes
322

 
331

 
292

 
332

 
249

 
73

29.3
 %
 
1,277

 
1,163

 
114

9.8
 %
Net earnings
$
531

 
$
548

 
$
472

 
$
558

 
$
443

 
$
88

19.9
 %
 
$
2,109

 
$
1,979

 
$
130

6.6
 %
Net earnings attributable to common stockholders
$
531

 
$
548

 
$
472

 
$
558

 
$
443

 
$
88

19.9
 %
 
$
2,109


$
1,979


$
130

6.6
 %
 


 


 


 
 
 
 
 
 
 
 


 


 


 
COMMON SHARE STATISTICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic EPS
$
0.64

 
$
0.70

 
$
0.67

 
$
0.79

 
$
0.63

 
$
0.01

1.6
 %
 
$
2.78

 
$
2.81

 
$
(0.03
)
(1.1
)%
Diluted EPS
$
0.64

 
$
0.70

 
$
0.67

 
$
0.79

 
$
0.63

 
$
0.01

1.6
 %
 
$
2.78

 
$
2.81

 
$
(0.03
)
(1.1
)%
Common stock price
$
29.75

 
$
24.55

 
n/a

 
n/a

 
n/a

 
$
29.75

n/a

 
$
29.75

 
n/a

 
$
29.75

n/a

Book value per share
$
12.57

 
$
11.92

 
$
9.06

 
$
8.57

 
$
8.45

 
$
4.12

48.8
 %
 
$
12.57

 
$
8.45

 
$
4.12

48.8
 %
Tangible book value per share(1)
$
10.81

 
$
10.25

 
$
7.06

 
$
6.56

 
$
6.68

 
$
4.13

61.8
 %
 
$
10.81

 
$
6.68

 
$
4.13

61.8
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning common shares outstanding
833.8

 
705.3

 
705.3

 
705.3

 
705.3

 
128.5

18.2
 %
 
705.3

 
705.3

 
—

—
 %
Issuance of common shares through initial public offering
—

 
128.5

 
—

 
—

 
—

 
—

NM

 
128.5

 
—

 
128.5

NM

Shares repurchased
—

 
—

 
—

 
—

 
—

 
—

NM

 
—

 
—

 
—

NM

Ending common shares outstanding
833.8

 
833.8

 
705.3

 
705.3

 
705.3

 
128.5

18.2
 %
 
833.8

 
705.3

 
128.5

18.2
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding
833.8

 
781.8

 
705.3

 
705.3

 
705.3

 
128.5

18.2
 %
 
757.4

 
705.3

 
52.1

7.4
 %
Weighted average common shares outstanding (fully diluted)
834.3

 
781.9

 
705.3

 
705.3

 
705.3

 
129.0

18.3
 %
 
757.6

 
705.3

 
52.3

7.4
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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.

1


SYNCHRONY FINANCIAL
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SELECTED METRICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(unaudited, $ in millions, except account data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
 
 
 
Twelve months ended
 
 
 
 
Dec 31,
2014
 
Sep 30,
2014
 
Jun 30,
2014
 
Mar 31,
2014
 
Dec 31,
2013
 
4Q'14 vs. 4Q'13
 
Dec 31,
2014
 
Dec 31,
2013
 
YTD'14 vs. YTD'13
PERFORMANCE METRICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on assets(1)
2.7
%
 
3.2
%
 
3.1
%
 
3.9
%
 
3.0
%
 


(0.3
)%
 
3.2
%
 
3.5
%
 


(0.3
)%
Return on equity(2)
20.2
%
 
26.8
%
 
29.9
%
 
35.3
%
 
31.1
%
 


(10.9
)%
 
26.7
%
 
38.6
%
 


(11.9
)%
Return on tangible common equity(3)
23.4
%
 
32.4
%
 
38.5
%
 
44.2
%
 
40.0
%
 


(16.6
)%
 
32.4
%
 
51.1
%
 


(18.7
)%
Net interest margin(4)
15.60
%
 
17.11
%
 
17.84
%
 
18.83
%
 
19.30
%
 


(3.70
)%
 
17.20
%
 
18.78
%
 


(1.58
)%
Efficiency ratio(5)
32.4
%
 
31.9
%
 
35.5
%
 
26.9
%
 
34.8
%
 


(2.4
)%
 
31.7
%
 
28.6
%
 


3.1
 %
Other expense as a % of average loan receivables, including held for sale
5.16
%
 
5.09
%
 
5.77
%
 
4.51
%
 
5.77
%
 


(0.61
)%
 
5.13
%
 
4.74
%
 


0.39
 %
Effective income tax rate
37.7
%
 
37.7
%
 
38.2
%
 
37.3
%
 
36.0
%
 


1.7
 %
 
37.7
%
 
37.0
%
 


0.7
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CREDIT QUALITY METRICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net charge-offs as a % of average loan receivables, including held for sale
4.32
%
 
4.05
%
 
4.88
%
 
4.86
%
 
5.13
%
 


(0.81
)%
 
4.51
%
 
4.68
%
 


(0.17
)%
30+ days past due as a % of period-end loan receivables
4.14
%
 
4.26
%
 
3.82
%
 
4.09
%
 
4.35
%
 


(0.21
)%
 
4.14
%
 
4.35
%
 


(0.21
)%
90+ days past due as a % of period-end loan receivables
1.90
%
 
1.85
%
 
1.65
%
 
1.93
%
 
1.96
%
 


(0.06
)%
 
1.90
%
 
1.96
%
 


(0.06
)%
Net charge-offs
$
663

 
$
579

 
$
673

 
$
658

 
$
718

 
$
(55
)
(7.7
)%
 
$
2,573

 
$
2,454

 
$
119

4.8
 %
Loan receivables delinquent over 30 days
$
2,536

 
$
2,416

 
$
2,097

 
$
2,220

 
$
2,488

 
$
48

1.9
 %
 
$
2,536

 
$
2,488

 
$
48

1.9
 %
Loan receivables delinquent over 90 days
$
1,162

 
$
1,051

 
$
908

 
$
1,046

 
$
1,121

 
$
41

3.7
 %
 
$
1,162

 
$
1,121

 
$
41

3.7
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses (period-end)
$
3,236

 
$
3,102

 
$
3,006

 
$
2,998

 
$
2,892

 
$
344

11.9
 %
 
$
3,236

 
$
2,892

 
$
344

11.9
 %
Allowance coverage ratio(6)
5.28
%
 
5.46
%
 
5.48
%
 
5.52
%
 
5.05
%
 


0.23
 %
 
5.28
%
 
5.05
%
 


0.23
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BUSINESS METRICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase volume(7)
$
30,081

 
$
26,004

 
$
25,978

 
$
21,086

 
$
27,002

 
$
3,079

11.4
 %
 
$
103,149

 
$
93,858

 
$
9,291

9.9
 %
Period-end loan receivables
$
61,286

 
$
56,767

 
$
54,873

 
$
54,285

 
$
57,254

 
$
4,032

7.0
 %
 
$
61,286

 
$
57,254

 
$
4,032

7.0
 %
Credit cards
$
58,880

 
$
54,263

 
$
52,406

 
$
52,008

 
$
54,958

 
$
3,922

7.1
 %
 
$
58,880

 
$
54,958

 
$
3,922

7.1
 %
Consumer installment loans
$
1,063

 
$
1,081

 
$
1,047

 
$
963

 
$
965

 
$
98

10.2
 %
 
$
1,063

 
$
965

 
$
98

10.2
 %
Commercial credit products
$
1,320

 
$
1,404

 
$
1,405

 
$
1,299

 
$
1,317

 
$
3

0.2
 %
 
$
1,320

 
$
1,317

 
$
3

0.2
 %
Other
$
23

 
$
19

 
$
15

 
$
15

 
$
14

 
$
9

64.3
 %
 
$
23

 
$
14

 
$
9

64.3
 %
Average loan receivables, including held for sale
$
59,547

 
$
57,391

 
$
55,363

 
$
55,495

 
$
54,895

 
$
4,652

8.5
 %
 
$
57,101

 
$
52,407

 
$
4,694

9.0
 %
Period-end active accounts (in thousands)(8)
64,286

 
60,489

 
59,248

 
57,349

 
61,957

 
2,329

3.8
 %
 
64,286

 
61,957

 
2,329

3.8
 %
Average active accounts (in thousands)(8)
61,667

 
59,907

 
58,386

 
59,342

 
58,402

 
3,265

5.6
 %
 
60,009

 
56,253

 
3,756

6.7
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIQUIDITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liquid assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and equivalents
$
11,828

 
$
14,808

 
$
6,782

 
$
5,331

 
$
2,319

 
$
9,509

NM

 
$
11,828

 
$
2,319

 
$
9,509

NM

Total liquid assets
$
12,942

 
$
14,077

 
$
6,119

 
$
4,806

 
$
2,058

 
$
10,884

NM

 
$
12,942

 
$
2,058

 
$
10,884

NM

Undrawn credit facilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Undrawn committed securitization financings
$
6,100

 
$
5,650

 
$
5,650

 
$
450

 
$
—

 
$
6,100

NM

 
$
6,100

 
$
—

 
$
6,100

NM

Total liquid assets and undrawn credit facilities
$
19,042

 
$
19,727

 
$
11,769

 
$
5,256

 
$
2,058

 
$
16,984

NM

 
$
19,042

 
$
2,058

 
$
16,984

NM

Liquid assets % of total assets
17.09
%
 
19.16
%
 
9.69
%
 
8.11
%
 
3.48
%
 


13.61
 %
 
17.09
%
 
3.48
%
 


13.61
 %
Liquid assets including undrawn committed securitization financings % of total assets
25.15
%
 
26.85
%
 
18.63
%
 
8.87
%
 
3.48
%
 


21.67
 %
 
25.15
%
 
3.48
%
 


21.67
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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) Allowance coverage ratio represents allowance for loan losses divided by total period-end loan receivables.
(7) 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.
(8) Active accounts represent credit card or installment loan accounts on which there has been a purchase, payment or outstanding balance in the current month.

2


SYNCHRONY FINANCIAL
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
STATEMENTS OF EARNINGS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(unaudited, $ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
 
 
 
Twelve months ended
 
 
 
 
Dec 31,
2014
 
Sep 30,
2014
 
Jun 30,
2014
 
Mar 31,
2014
 
Dec 31,
2013
 
4Q'14 vs. 4Q'13
 
Dec 31,
2014
 
Dec 31,
2013
 
YTD'14 vs. YTD'13
Interest income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and fees on loans
$
3,252

 
$
3,116

 
$
2,920

 
$
2,928

 
$
3,032

 
$
220

7.3
 %
 
$
12,216

 
$
11,295

 
$
921

8.2
 %
Interest on investment securities
8

 
7

 
6

 
5

 
5

 
3

60.0
 %
 
26

 
18

 
8

44.4
 %
Total interest income
3,260

 
3,123

 
2,926

 
2,933

 
3,037

 
223

7.3
 %
 
12,242

 
11,313

 
929

8.2
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest on deposits
139

 
126

 
109

 
96

 
93

 
46

49.5
 %
 
470

 
374

 
96

25.7
 %
Interest on borrowings of consolidated securitization entities
57

 
57

 
54

 
47

 
49

 
8

16.3
 %
 
215

 
211

 
4

1.9
 %
Interest on third party debt
78

 
46

 
—

 
—

 
—

 
78

NM

 
124

 
—

 
124

NM

Interest on related party debt
8

 
15

 
43

 
47

 
46

 
(38
)
(82.6
)%
 
113

 
157

 
(44
)
(28.0
)%
Total interest expense
282

 
244

 
206

 
190

 
188

 
94

50.0
 %
 
922

 
742

 
180

24.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income
2,978

 
2,879

 
2,720

 
2,743

 
2,849

 
129

4.5
 %
 
11,320

 
10,571

 
749

7.1
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Retailer share arrangements
(698
)
 
(693
)
 
(590
)
 
(594
)
 
(662
)
 
(36
)
5.4
 %
 
(2,575
)
 
(2,373
)
 
(202
)
8.5
 %
Net interest income, after retailer share arrangements
2,280

 
2,186

 
2,130

 
2,149

 
2,187

 
93

4.3
 %
 
8,745

 
8,198

 
547

6.7
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for loan losses
797

 
675

 
681

 
764

 
818

 
(21
)
(2.6
)%
 
2,917

 
3,072

 
(155
)
(5.0
)%
Net interest income, after retailer share arrangements and provision for loan losses
1,483

 
1,511

 
1,449

 
1,385

 
1,369

 
114

8.3
 %
 
5,828

 
5,126

 
702

13.7
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interchange revenue
120

 
101

 
92

 
76

 
89

 
31

34.8
 %
 
389

 
324

 
65

20.1
 %
Debt cancellation fees
67

 
68

 
70

 
70

 
88

 
(21
)
(23.9
)%
 
275

 
324

 
(49
)
(15.1
)%
Loyalty programs
(91
)
 
(84
)
 
(63
)
 
(43
)
 
(57
)
 
(34
)
59.6
 %
 
(281
)
 
(213
)
 
(68
)
31.9
 %
Other
66

 
11

 
13

 
12

 
10

 
56

NM

 
102

 
65

 
37

56.9
 %
Total other income
162

 
96

 
112

 
115

 
130

 
32

24.6
 %
 
485

 
500

 
(15
)
(3.0
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other expense:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Employee costs
227

 
239

 
207

 
193

 
190

 
37

19.5
 %
 
866

 
698

 
168

24.1
 %
Professional fees
152

 
159

 
155

 
141

 
157

 
(5
)
(3.2
)%
 
607

 
486

 
121

24.9
 %
Marketing and business development
165

 
115

 
97

 
83

 
117

 
48

41.0
 %
 
460

 
269

 
191

71.0
 %
Information processing
60

 
47

 
53

 
52

 
52

 
8

15.4
 %
 
212

 
193

 
19

9.8
 %
Other
188

 
168

 
285

 
141

 
291

 
(103
)
(35.4
)%
 
782

 
838

 
(56
)
(6.7
)%
Total other expense
792

 
728

 
797

 
610

 
807

 
(15
)
(1.9
)%
 
2,927

 
2,484

 
443

17.8
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings before provision for income taxes
853

 
879

 
764

 
890

 
692

 
161

23.3
 %
 
3,386

 
3,142

 
244

7.8
 %
Provision for income taxes
322

 
331

 
292

 
332

 
249

 
73

29.3
 %
 
1,277

 
1,163

 
114

9.8
 %
Net earnings attributable to common shareholders
$
531

 
$
548

 
$
472

 
$
558

 
$
443

 
$
88

19.9
 %
 
$
2,109

 
$
1,979

 
$
130

6.6
 %

3


SYNCHRONY FINANCIAL
 
 
 
 
 
 
 
 
 
 
 
 
STATEMENTS OF FINANCIAL POSITION
 
 
 
 
 
 
 
 
 
 
(unaudited, $ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
 
 
 
Dec 31,
2014
 
Sep 30,
2014
 
Jun 30,
2014
 
Mar 31,
2014
 
Dec 31,
2013
 
Dec 31, 2014 vs.
Dec 31, 2013
Assets
 
 
 
 
 
 
 
 
 
 
 
 
Cash and equivalents
$
11,828

 
$
14,808

 
$
6,782

 
$
5,331

 
$
2,319

 
$
9,509

NM

Investment securities
1,598

 
325

 
298

 
265

 
236

 
1,362

NM

Loan receivables:
 
 
 
 
 
 
 
 
 
 
 
 
Unsecuritized loans held for investment
34,335

 
30,474

 
28,280

 
29,101

 
31,183

 
3,152

10.1
 %
Restricted loans of consolidated securitization entities
26,951

 
26,293

 
26,593

 
25,184

 
26,071

 
880

3.4
 %
Total loan receivables
61,286

 
56,767

 
54,873

 
54,285

 
57,254

 
4,032

7.0
 %
Less: Allowance for loan losses
(3,236
)
 
(3,102
)
 
(3,006
)
 
(2,998
)
 
(2,892
)
 
(344
)
11.9
 %
Loan receivables, net
58,050

 
53,665

 
51,867

 
51,287

 
54,362

 
3,688

6.8
 %
Loan receivables held for sale
332

 
1,493

 
1,458

 
—

 
—

 
332

NM

Goodwill
949

 
949

 
949

 
949

 
949

 
—

—
 %
Intangible assets, net
519

 
449

 
463

 
464

 
300

 
219

73.0
 %
Other assets
2,431

 
1,780

 
1,358

 
949

 
919

 
1,512

164.5
 %
Total assets
$
75,707

 
$
73,469

 
$
63,175

 
$
59,245

 
$
59,085

 
$
16,622

28.1
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and Equity
 
 
 
 
 
 
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposit accounts
$
34,847

 
$
32,480

 
$
30,258

 
$
27,123

 
$
25,360

 
$
9,487

37.4
 %
Non-interest-bearing deposit accounts
108

 
209

 
204

 
235

 
359

 
(251
)
(69.9
)%
Total deposits
34,955

 
32,689

 
30,462

 
27,358

 
25,719

 
9,236

35.9
 %
Borrowings:
 
 
 
 
 
 
 
 
 
 
 
 
Borrowings of consolidated securitization entities
14,967

 
15,091

 
15,114

 
14,642

 
15,362

 
(395
)
(2.6
)%
Bank term loan facility
8,245

 
7,495

 
—

 
—

 
—

 
8,245

NM

Senior unsecured notes
3,593

 
3,593

 
—

 
—

 
—

 
3,593

NM

Related party debt
655

 
1,405

 
7,859

 
8,062

 
8,959

 
(8,304
)
(92.7
)%
Total borrowings
27,460

 
27,584

 
22,973

 
22,704

 
24,321

 
3,139

12.9
 %
Accrued expenses and other liabilities
2,814

 
3,255

 
3,347

 
3,141

 
3,085

 
(271
)
(8.8
)%
Total liabilities
65,229

 
63,528

 
56,782

 
53,203

 
53,125

 
12,104

22.8
 %
Equity:
 
 
 
 
 
 
 
 
 
 
 
 
Parent’s net investment
—

 
—

 
—

 
6,052

 
5,973

 
(5,973
)
(100.0
)%
Common stock
1

 
1

 
1

 
—

 
—

 
1

NM

Additional paid-in-capital
9,408

 
9,401

 
6,399

 
—

 
—

 
9,408

NM

Retained earnings
1,079

 
548

 
—

 
—

 
—

 
1,079

NM

Accumulated other comprehensive income:
(10
)
 
(9
)
 
(7
)
 
(10
)
 
(13
)
 
3

(23.1
)%
Total equity
10,478

 
9,941

 
6,393

 
6,042

 
5,960

 
4,518

75.8
 %
Total liabilities and equity
$
75,707

 
$
73,469

 
$
63,175

 
$
59,245

 
$
59,085

 
$
16,622

28.1
 %
 
 
 
 
 
 
 
 
 
 
 
 
 

4


SYNCHRONY FINANCIAL
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AVERAGE BALANCES, NET INTEREST INCOME AND NET INTEREST MARGIN
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(unaudited, $ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
Dec 31, 2014
 
Sep 30, 2014
 
Jun 30, 2014
 
Mar 31, 2014
 
Dec 31, 2013
 
 
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
$
13,631

 
$
7

 
0.20
%
 
$
9,793

 
$
4

 
0.16
%
 
$
5,489

 
$
3

 
0.22
%
 
$
4,001

 
$
2

 
0.21
%
 
$
2,792

 
$
2

 
0.28
%
Securities available for sale
962

 
1

 
0.40
%
 
309

 
3

 
3.89
%
 
285

 
3

 
4.22
%
 
250

 
3

 
4.92
%
 
237

 
3

 
4.97
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loan receivables:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit cards, including held for sale
57,075

 
3,186

 
21.68
%
 
54,891

 
3,054

 
22.32
%
 
52,957

 
2,860

 
21.66
%
 
53,211

 
2,867

 
22.10
%
 
52,271

 
2,963

 
22.25
%
Consumer installment loans
1,072

 
27

 
9.78
%
 
1,070

 
25

 
9.37
%
 
1,004

 
24

 
9.59
%
 
959

 
23

 
9.84
%
 
1,249

 
29

 
9.11
%
Commercial credit products
1,379

 
38

 
10.70
%
 
1,412

 
37

 
10.51
%
 
1,387

 
36

 
10.41
%
 
1,311

 
38

 
11.89
%
 
1,362

 
39

 
11.24
%
Other
21

 
1

 
NM

 
18

 
—

 
—
%
 
15

 
—

 
—
%
 
14

 
—

 
—
%
 
13

 
1

 
NM

Total loan receivables, including held for sale
59,547

 
3,252

 
21.21
%
 
57,391

 
3,116

 
21.78
%
 
55,363

 
2,920

 
21.16
%
 
55,495

 
2,928

 
21.64
%
 
54,895

 
3,032

 
21.68
%
Total interest-earning assets
74,140

 
3,260

 
17.07
%
 
67,493

 
3,123

 
18.56
%
 
61,137

 
2,926

 
19.20
%
 
59,746

 
2,933

 
20.13
%
 
57,924

 
3,037

 
20.58
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
1,220

 
 
 
 
 
1,260

 
 
 
 
 
637

 
 
 
 
 
561

 
 
 
 
 
533

 
 
 
 
Allowance for loans losses
(3,160
)
 
 
 
 
 
(3,058
)
 
 
 
 
 
(3,005
)
 
 
 
 
 
(2,931
)
 
 
 
 
 
(2,823
)
 
 
 
 
Other assets
2,831

 
 
 
 
 
2,605

 
 
 
 
 
2,446

 
 
 
 
 
2,045

 
 
 
 
 
2,072

 
 
 
 
Total non-interest-earning assets
891

 
 
 
 
 
807

 
 
 
 
 
78

 
 
 
 
 
(325
)
 
 
 
 
 
(218
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
75,031

 
 
 
 
 
$
68,300

 
 
 
 
 
$
61,215

 
 
 
 
 
$
59,421

 
 
 
 
 
$
57,706

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposit accounts
$
33,980

 
$
139

 
1.59
%
 
$
31,459

 
$
126

 
1.61
%
 
$
28,568

 
$
109

 
1.53
%
 
$
26,317

 
$
96

 
1.50
%
 
$
23,857

 
$
93

 
1.53
%
Borrowings of consolidated securitization entities
14,766

 
57

 
1.50
%
 
15,102

 
57

 
1.51
%
 
14,727

 
54

 
1.47
%
 
14,830

 
47

 
1.30
%
 
15,378

 
49

 
1.25
%
Bank term loan facility(1)
8,057

 
46

 
2.22
%
 
3,747

 
28

 
3.00
%
 
—

 
—

 
—
%
 
—

 
—

 
—
%
 
—

 
—

 
—
%
Senior unsecured notes(1)
3,593

 
32

 
3.46
%
 
1,797

 
18

 
4.02
%
 
—

 
—

 
—
%
 
—

 
—

 
—
%
 
—

 
—

 
—
%
Related party debt(1)
843

 
8

 
3.68
%
 
4,582

 
15

 
1.31
%
 
7,959

 
43

 
2.17
%
 
8,286

 
47

 
2.33
%
 
9,037

 
46

 
2.00
%
Total interest-bearing liabilities
61,239

 
282

 
1.79
%
 
56,687

 
244

 
1.73
%
 
51,254

 
206

 
1.61
%
 
49,433

 
190

 
1.58
%
 
48,272

 
188

 
1.53
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest-bearing liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest-bearing deposit accounts
182

 
 
 
 
 
206

 
 
 
 
 
221

 
 
 
 
 
331

 
 
 
 
 
450

 
 
 
 
Other liabilities
3,382

 
 
 
 
 
3,208

 
 
 
 
 
3,412

 
 
 
 
 
3,182

 
 
 
 
 
3,391

 
 
 
 
Total non-interest-bearing liabilities
3,564

 
 
 
 
 
3,414

 
 
 
 
 
3,633

 
 
 
 
 
3,513

 
 
 
 
 
3,841

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities
64,803

 
 
 
 
 
60,101

 
 
 
 
 
54,887

 
 
 
 
 
52,946

 
 
 
 
 
52,113

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total equity
10,228

 
 
 
 
 
8,199

 
 
 
 
 
6,328

 
 
 
 
 
6,475

 
 
 
 
 
5,593

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities and equity
$
75,031

 
 
 
 
 
$
68,300

 
 
 
 
 
$
61,215

 
 
 
 
 
$
59,421

 
 
 
 
 
$
57,706

 
 
 
 
Net interest income
 
 
$
2,978

 
 
 
 
 
$
2,879

 
 
 
 
 
$
2,720

 
 
 
 
 
$
2,743

 
 
 
 
 
$
2,849

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate spread(2)
 
 
 
 
15.28
%
 
 
 
 
 
16.83
%
 
 
 
 
 
17.59
%
 
 
 
 
 
18.55
%
 
 
 
 
 
19.05
%
Net interest margin(3)
 
 
 
 
15.60
%
 
 
 
 
 
17.11
%
 
 
 
 
 
17.84
%
 
 
 
 
 
18.83
%
 
 
 
 
 
19.30
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Interest on liabilities calculated above utilizes monthly average balances. The effective interest rates for the quarters ended December 31, 2014 and September 30, 2014, were as follows: GECC loan 4.21% and 4.21%, Bank term loan facility 2.19% and 2.21%,
Senior unsecured notes 3.52% and 3.62% respectively. The Bank term loan facility effective rate for the quarter ended September 30, 2014 excludes the impact of a one time charge incurred in connection with the prepayment of the loan facility.
(2) Interest rate spread represents the difference between the yield on total interest-earning assets and the rate on total interest-bearing liabilities.
(3) Net interest margin represents net interest income divided by average interest-earning assets.

5


SYNCHRONY FINANCIAL
 
 
 
 
 
 
 
 
 
AVERAGE BALANCES, NET INTEREST INCOME AND NET INTEREST MARGIN
 
 
 
 
 
 
(unaudited, $ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Twelve months ended
Dec 31, 2014
 
Twelve months ended
Dec 31, 2013
 
 
 
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
$
8,230

 
$
16

 
0.19
%
 
$
3,651

 
$
10

 
0.27
%
Securities available for sale
487

 
10

 
2.05
%
 
217

 
8

 
3.69
%
 
 
 
 
 
 
 
 
 
 
 
 
Loan receivables:
 
 
 
 
 
 
 
 
 
 
 
Credit cards, including held for sale
54,686

 
11,967

 
21.88
%
 
49,704

 
11,015

 
22.16
%
Consumer installment loans
1,025

 
99

 
9.66
%
 
1,336

 
129

 
9.66
%
Commercial credit products
1,373

 
149

 
10.85
%
 
1,355

 
150

 
11.07
%
Other
17

 
1

 
5.88
%
 
12

 
1

 
8.33
%
Total loan receivables, including held for sale
57,101

 
12,216

 
21.39
%
 
52,407

 
11,295

 
21.55
%
Total interest-earning assets
65,818

 
12,242

 
18.60
%
 
56,275

 
11,313

 
20.10
%
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
881

 
 
 
 
 
552

 
 
 
 
Allowance for loans losses
(3,039
)
 
 
 
 
 
(2,693
)
 
 
 
 
Other assets
2,492

 
 
 
 
 
2,050

 
 
 
 
Total non-interest-earning assets
334

 
 
 
 
 
(91
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
66,152

 
 
 
 
 
$
56,184

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposit accounts
$
30,110

 
$
470

 
1.56
%
 
$
22,405

 
$
374

 
1.67
%
Borrowings of consolidated securitization entities
14,835

 
215

 
1.45
%
 
16,209

 
211

 
1.30
%
Bank term loan facility(1)
3,056

 
74

 
2.42
%
 
—

 
—

 
—
%
Senior unsecured notes(1)
1,382

 
50

 
3.62
%
 
—

 
—

 
—
%
Related party debt(1)
5,335

 
113

 
2.12
%
 
9,000

 
157

 
1.74
%
Total interest-bearing liabilities
54,718

 
922

 
1.69
%
 
47,614

 
742

 
1.56
%
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest-bearing liabilities
 
 
 
 
 
 
 
 
 
 
 
Non-interest-bearing deposit accounts
240

 
 
 
 
 
506

 
 
 
 
Other liabilities
3,306

 
 
 
 
 
2,943

 
 
 
 
Total non-interest-bearing liabilities
3,546

 
 
 
 
 
3,449

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities
58,264

 
 
 
 
 
51,063

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
 
 
 
 
Total equity
7,888

 
 
 
 
 
5,121

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities and equity
$
66,152

 
 
 
 
 
$
56,184

 
 
 
 
Net interest income
 
 
$
11,320

 
 
 
 
 
$
10,571

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate spread(2)
 
 
 
 
16.91
%
 
 
 
 
 
18.54
%
Net interest margin(3)
 
 
 
 
17.20
%
 
 
 
 
 
18.78
%
 
 
 
 
 
 
 
 
 
 
 
 
(1) Interest on liabilities calculated above utilizes monthly average balances. The effective interest rates, from the date of issuance through December 31,
2014, were as follows: GECC loan 4.21%, Bank term loan facility 2.20%, Senior unsecured notes 3.55%. The Bank term loan facility effective rate
excludes the impact of a one time charge incurred in connection with the prepayment of the loan facility.
(2) Interest rate spread represents the difference between the yield on total interest-earning assets and the rate on total interest-bearing liabilities.
(3) Net interest margin represents net interest income divided by average interest-earning assets.

6


SYNCHRONY FINANCIAL
 
 
 
 
 
 
 
 
 
 
BALANCE SHEET STATISTICS
 
 
 
 
 
 
 
 
 
 
 
 
(unaudited, $ in millions, except per share statistics)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
 
 
 
Dec 31,
2014
 
Sep 30,
2014
 
Jun 30,
2014
 
Mar 31,
2014
 
Dec 31,
2013
 
Dec 31, 2014 vs.
Dec 31, 2013
BALANCE SHEET STATISTICS
 
 
 
 
 
 
 
 
 
 
 
 
Total common equity
$
10,478

 
$
9,941

 
$
6,393

 
$
6,042

 
$
5,960

 
$
4,518

75.8
%
Total common equity as a % of total assets
13.84
%
 
13.53
%
 
10.12
%
 
10.20
%
 
10.09
%
 

3.75
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Tangible assets
$
74,239

 
$
72,071

 
$
61,763

 
$
57,832

 
$
57,836

 
$
16,403

28.4
%
Tangible common equity(1)
$
9,010

 
$
8,543

 
$
4,981

 
$
4,629

 
$
4,711

 
$
4,299

91.3
%
Tangible common equity as a % of tangible assets(1)
12.14
%
 
11.85
%
 
8.06
%
 
8.00
%
 
8.15
%
 

3.99
%
Tangible common equity per share(1)
$
10.81

 
$
10.24

 
$
7.07

 
$
6.57

 
$
6.68

 
$
4.13

61.8
%
 
 
 
 
 
 
 
 
 
 
 
 
 
REGULATORY CAPITAL RATIOS(2)
 
 
 
 
 
 
 
 
 
 
 
 
Basel I
 
 
 
 
 
 
 
 
 
 
 
 
Total risk-based capital ratio(3)
16.2
%
 
16.4
%
 
 
 
 
 
 
 
 
 
Tier 1 risk-based capital ratio(4)
14.9
%
 
15.1
%
 
 
 
 
 
 
 
 
 
Tier 1 common ratio(5)
14.9
%
 
15.1
%
 
 
 
 
 
 
 
 
 
Tier 1 leverage ratio(6)
12.5
%
 
12.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basel III
 
 
 
 
 
 
 
 
 
 
 
 
Tier 1 common ratio(7)
14.5
%
 
14.6
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Tangible Common Equity ("TCE") is a non-GAAP measure. We believe TCE is a more meaningful measure to investors of the net asset value of the Company. 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 as of the end of 3Q 2014 are preliminary and therefore subject to change. As a new savings and loan holding company, the Company
historically has not been required by regulators to disclose capital ratios, and therefore these ratios are non-GAAP measures. See Reconciliation of Non-GAAP
Measures and Calculation of Regulatory Measures for components of capital ratio calculations.
(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 common ratio is the ratio of common equity Tier 1 capital divided by risk-weighted assets.
(6) Tier 1 leverage ratio is calculated based on Tier 1 capital divided by total assets, after certain adjustments.
(7) Our Basel III Tier 1 common ratio is the ratio of common equity Tier 1 capital to total risk-weighted assets, each as calculated in accordance with the U.S. Basel III
capital rules (on a fully phased-in basis). Our Basel III Tier 1 common ratio is a preliminary estimate reflecting management’s interpretation of the final Basel III
capital rules adopted in July 2013 by the Federal Reserve Board, which have not been fully implemented, and our estimate and interpretations are subject to, among
other things, ongoing regulatory review and implementation guidance.
 
 
 
 
 
 
 
 
 
 
 
 
 

7


SYNCHRONY FINANCIAL
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PLATFORM RESULTS AND RECONCILIATION OF NON-GAAP MEASURES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(unaudited, in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
 
 
 
Twelve months ended
 
 
 
 
Dec 31,
2014
 
Sep 30,
2014
 
Jun 30,
2014
 
Mar 31,
2014
 
Dec 31,
2013
 
4Q'14 vs. 4Q'13
 
Dec 31,
2014
 
Dec 31,
2013
 
YTD'14 vs. YTD'13
RETAIL CARD
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase volume(1),(2)
$
24,855

 
$
20,991

 
$
21,032

 
$
16,713

 
$
22,199

 
$
2,656

12.0
 %
 
$
83,591

 
$
75,739

 
$
7,852

10.4
 %
Period-end loan receivables
$
42,308

 
$
38,466

 
$
37,238

 
$
37,175

 
$
39,834

 
$
2,474

6.2
 %
 
$
42,308

 
$
39,834

 
$
2,474

6.2
 %
Average loan receivables, including held for sale
$
40,929

 
$
39,411

 
$
38,047

 
$
38,223

 
$
37,576

 
$
3,353

8.9
 %
 
$
39,278

 
$
35,716

 
$
3,562

10.0
 %
Average active accounts (in thousands)(2),(3)
49,871

 
48,433

 
47,248

 
48,168

 
47,455

 
2,416

5.1
 %
 
48,599

 
45,690

 
2,909

6.4
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and fees on loans(2)
$
2,405

 
$
2,299

 
$
2,158

 
$
2,178

 
$
2,234

 
$
171

7.7
 %
 
$
9,040

 
$
8,317

 
$
723

8.7
 %
Other income(2)
141

 
78

 
92

 
96

 
113

 
28

24.8
 %
 
407

 
419

 
(12
)
(2.9
)%
Platform revenue, excluding retailer share arrangements(2)
2,546

 
2,377

 
2,250

 
2,274

 
2,347

 
199

8.5
 %
 
9,447

 
8,736

 
711

8.1
 %
Retailer share arrangements(2)
(686
)
 
(683
)
 
(577
)
 
(584
)
 
(651
)
 
(35
)
5.4
 %
 
(2,530
)
 
(2,331
)
 
(199
)
8.5
 %
Platform revenue(2)
$
1,860

 
$
1,694

 
$
1,673

 
$
1,690

 
$
1,696

 
$
164

9.7
 %
 
$
6,917

 
$
6,405

 
$
512

8.0
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PAYMENT SOLUTIONS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase volume(1)
$
3,419

 
$
3,226

 
$
3,115

 
$
2,687

 
$
3,111

 
$
308

9.9
 %
 
$
12,447

 
$
11,360

 
$
1,087

9.6
 %
Period-end loan receivables
$
12,095

 
$
11,514

 
$
11,014

 
$
10,647

 
$
10,893

 
$
1,202

11.0
 %
 
$
12,095

 
$
10,893

 
$
1,202

11.0
 %
Average loan receivables
$
11,772

 
$
11,267

 
$
10,785

 
$
10,775

 
$
10,844

 
$
928

8.6
 %
 
$
11,171

 
$
10,469

 
$
702

6.7
 %
Average active accounts (in thousands)(3)
7,113

 
6,892

 
6,692

 
6,737

 
6,566

 
547

8.3
 %
 
6,869

 
6,330

 
539

8.5
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and fees on loans
$
426

 
$
405

 
$
379

 
$
372

 
$
399

 
$
27

6.8
 %
 
$
1,582

 
$
1,506

 
$
76

5.0
 %
Other income
9

 
7

 
8

 
8

 
4

 
5

125.0
 %
 
32

 
36

 
(4
)
(11.1
)%
Platform revenue, excluding retailer share arrangements
435

 
412

 
387

 
380

 
403

 
32

7.9
 %
 
1,614

 
1,542

 
72

4.7
 %
Retailer share arrangements
(11
)
 
(9
)
 
(12
)
 
(9
)
 
(9
)
 
(2
)
22.2
 %
 
(41
)
 
(36
)
 
(5
)
13.9
 %
Platform revenue
$
424

 
$
403

 
$
375

 
$
371

 
$
394

 
$
30

7.6
 %
 
$
1,573

 
$
1,506

 
$
67

4.4
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CARECREDIT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase volume(1)
$
1,807

 
$
1,787

 
$
1,831

 
$
1,686

 
$
1,692

 
$
115

6.8
 %
 
$
7,111

 
$
6,759

 
$
352

5.2
 %
Period-end loan receivables
$
6,883

 
$
6,787

 
$
6,621

 
$
6,463

 
$
6,527

 
$
356

5.5
 %
 
$
6,883

 
$
6,527

 
$
356

5.5
 %
Average loan receivables
$
6,846

 
$
6,713

 
$
6,531

 
$
6,497

 
$
6,475

 
$
371

5.7
 %
 
$
6,652

 
$
6,222

 
$
430

6.9
 %
Average active accounts (in thousands)(3)
4,683

 
4,582

 
4,446

 
4,437

 
4,381

 
302

6.9
 %
 
4,541

 
4,233

 
308

7.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and fees on loans
$
421

 
$
412

 
$
383

 
$
378

 
$
399

 
$
22

5.5
 %
 
$
1,594

 
$
1,472

 
$
122

8.3
 %
Other income
12

 
11

 
12

 
11

 
13

 
(1
)
(7.7
)%
 
46

 
45

 
1

2.2
 %
Platform revenue, excluding retailer share arrangements
433

 
423

 
395

 
389

 
412

 
21

5.1
 %
 
1,640

 
1,517

 
123

8.1
 %
Retailer share arrangements
(1
)
 
(1
)
 
(1
)
 
(1
)
 
(2
)
 
1

(50.0
)%
 
(4
)
 
(6
)
 
2

(33.3
)%
Platform revenue
$
432

 
$
422

 
$
394

 
$
388

 
$
410

 
$
22

5.4
 %
 
$
1,636

 
$
1,511

 
$
125

8.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL SYF
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase volume(1),(2)
$
30,081

 
$
26,004

 
$
25,978

 
$
21,086

 
$
27,002

 
$
3,079

11.4
 %
 
$
103,149

 
$
93,858

 
$
9,291

9.9
 %
Period-end loan receivables
$
61,286

 
$
56,767

 
$
54,873

 
$
54,285

 
$
57,254

 
$
4,032

7.0
 %
 
$
61,286

 
$
57,254

 
$
4,032

7.0
 %
Average loan receivables, including held for sale
$
59,547

 
$
57,391

 
$
55,363

 
$
55,495

 
$
54,895

 
$
4,652

8.5
 %
 
$
57,101

 
$
52,407

 
$
4,694

9.0
 %
Average active accounts (in thousands)(2),(3)
61,667

 
59,907

 
58,386

 
59,342

 
58,402

 
3,265

5.6
 %
 
60,009

 
56,253

 
3,756

6.7
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and fees on loans(2)
$
3,252

 
$
3,116

 
$
2,920

 
$
2,928

 
$
3,032

 
$
220

7.3
 %
 
$
12,216

 
$
11,295

 
$
921

8.2
 %
Other income(2)
162

 
96

 
112

 
115

 
130

 
32

24.6
 %
 
485

 
500

 
(15
)
(3.0
)%
Platform revenue, excluding retailer share arrangements(2)
3,414

 
3,212

 
3,032

 
3,043

 
3,162

 
252

8.0
 %
 
12,701

 
11,795

 
906

7.7
 %
Retailer share arrangements(2)
(698
)
 
(693
)
 
(590
)
 
(594
)
 
(662
)
 
(36
)
5.4
 %
 
(2,575
)
 
(2,373
)
 
(202
)
8.5
 %
Platform revenue(2)
$
2,716

 
$
2,519

 
$
2,442

 
$
2,449

 
$
2,500

 
$
216

8.6
 %
 
$
10,126

 
$
9,422

 
$
704

7.5
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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.

8


SYNCHRONY FINANCIAL
 
 
 
 
 
 
 
 
 
RECONCILIATION OF NON-GAAP MEASURES AND CALCULATIONS OF REGULATORY MEASURES
 
 
 
 
(unaudited, $ in millions, except per share statistics)
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
Dec 31,
2014
 
Sep 30,
2014
 
Jun 30,
2014
 
Mar 31,
2014
 
Dec 31,
2013
COMMON EQUITY MEASURES
 
 
 
 
 
 
 
 
 
GAAP Total common equity
$
10,478

 
$
9,941

 
$
6,393

 
$
6,042

 
$
5,960

Less: Goodwill
(949
)
 
(949
)
 
(949
)
 
(949
)
 
(949
)
Less: Intangible assets, net
(519
)
 
(449
)
 
(463
)
 
(464
)
 
(300
)
Tangible common equity
$
9,010

 
$
8,543

 
$
4,981

 
$
4,629

 
$
4,711

Adjustments for certain other intangible assets, deferred tax liabilities
and certain items in accumulated comprehensive income (loss)
287

 
292

 
 
 
 
 
 
Basel I - Tier 1 capital and Tier 1 common equity
$
9,297

 
$
8,835

 
 
 
 
 
 
Adjustments for certain other intangible assets and deferred tax liabilities
(20
)
 
(24
)
 
 
 
 
 
 
Basel III - Tier I common equity
$
9,277

 
$
8,811

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RISK-BASED CAPITAL
 
 
 
 
 
 
 
 
 
Basel I - Tier 1 capital and Tier 1 common equity
$
9,297

 
$
8,835

 
 
 
 
 
 
Add: Allowance for loan losses includible in risk-based capital
808

 
760

 
 
 
 
 
 
Basel I - Risk-based capital
$
10,105

 
$
9,595

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ASSET MEASURES
 
 
 
 
 
 
 
 
 
Total assets
$
75,707

 
$
73,469

 
 
 
 
 
 
Adjustments for:
 
 
 
 
 
 
 
 
 
Disallowed goodwill and other disallowed intangible assets, net of
related deferred tax liabilities
(1,181
)
 
(1,110
)
 
 
 
 
 
 
Other
79

 
4

 
 
 
 
 
 
Total assets for leverage purposes - Basel I
$
74,605

 
$
72,363

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Risk-weighted assets - Basel I
$
62,250

 
$
58,457

 
 
 
 
 
 
Additional risk weighting adjustments related to:
 
 
 
 
 
 
 
 
 
Deferred taxes
1,321

 
1,319

 
 
 
 
 
 
Loan receivables delinquent over 90 days
581

 
526

 
 
 
 
 
 
Other
(11
)
 
(2
)
 
 
 
 
 
 
Risk-weighted assets - Basel III (fully phased in)
$
64,141

 
$
60,300

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TANGIBLE COMMON EQUITY PER SHARE
 
 
 
 
 
 
 
 
 
GAAP book value per share
$
12.57

 
$
11.92

 
$
9.06

 
$
8.57

 
$
8.45

Less: Goodwill
(1.14
)
 
(1.14
)
 
(1.34
)
 
(1.34
)
 
(1.34
)
Less: Intangible assets, net
(0.62
)
 
(0.53
)
 
(0.66
)
 
(0.67
)
 
(0.43
)
Tangible common equity per share
$
10.81

 
$
10.25

 
$
7.06

 
$
6.56

 
$
6.68


9