Exhibit 99.2


SYNCHRONY FINANCIAL
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL SUMMARY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(unaudited, in millions, except per share statistics)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
 
 
Twelve Months Ended
 
 
 
 
Dec 31,
2015
 
Sep 30,
2015
 
Jun 30,
2015
 
Mar 31,
2015
 
Dec 31,
2014
 
4Q'15 vs. 4Q'14
 
Dec 31,
2015
 
Dec 31,
2014
 
YTD'15 vs. YTD'14
EARNINGS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income
$
3,208

 
$
3,103

 
$
2,907

 
$
2,875

 
$
2,978

 
$
230

7.7
 %
 
$
12,093

 
$
11,320

 
$
773

6.8
 %
Retailer share arrangements
(734
)
 
(723
)
 
(621
)
 
(660
)
 
(698
)
 
(36
)
5.2
 %
 
(2,738
)
 
(2,575
)
 
(163
)
6.3
 %
Net interest income, after retailer share arrangements
2,474

 
2,380

 
2,286

 
2,215

 
2,280

 
194

8.5
 %
 
9,355

 
8,745

 
610

7.0
 %
Provision for loan losses
823

 
702

 
740

 
687

 
797

 
26

3.3
 %
 
2,952

 
2,917

 
35

1.2
 %
Net interest income, after retailer share arrangements and provision for loan losses
1,651

 
1,678

 
1,546

 
1,528

 
1,483

 
168

11.3
 %
 
6,403

 
5,828

 
575

9.9
 %
Other income
87

 
84

 
120

 
101

 
162

 
(75
)
(46.3
)%
 
392

 
485

 
(93
)
(19.2
)%
Other expense
870

 
843

 
805

 
746

 
792

 
78

9.8
 %
 
3,264

 
2,927

 
337

11.5
 %
Earnings before provision for income taxes
868

 
919

 
861

 
883

 
853

 
15

1.8
 %
 
3,531

 
3,386

 
145

4.3
 %
Provision for income taxes
321

 
345

 
320

 
331

 
322

 
(1
)
(0.3
)%
 
1,317

 
1,277

 
40

3.1
 %
Net earnings
$
547

 
$
574

 
$
541

 
$
552

 
$
531

 
$
16

3.0
 %
 
$
2,214

 
$
2,109

 
$
105

5.0
 %
Net earnings attributable to common stockholders
$
547

 
$
574

 
$
541

 
$
552

 
$
531

 
$
16

3.0
 %
 
$
2,214


$
2,109


$
105

5.0
 %
 


 


 


 
 
 
 
 
 
 
 


 


 


 
COMMON SHARE STATISTICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic EPS
$
0.66

 
$
0.69

 
$
0.65

 
$
0.66

 
$
0.64

 
$
0.02

3.1
 %
 
$
2.66

 
$
2.78

 
$
(0.12
)
(4.3
)%
Diluted EPS
$
0.65

 
$
0.69

 
$
0.65

 
$
0.66

 
$
0.64

 
$
0.01

1.6
 %
 
$
2.65

 
$
2.78

 
$
(0.13
)
(4.7
)%
Common stock price
$
30.41

 
$
31.30

 
$
32.93

 
$
30.35

 
$
29.75

 
$
0.66

2.2
 %
 
$
30.41

 
$
29.75

 
$
0.66

2.2
 %
Book value per share
$
15.12

 
$
14.58

 
$
13.89

 
$
13.24

 
$
12.57

 
$
2.55

20.3
 %
 
$
15.12

 
$
12.57

 
$
2.55

20.3
 %
Tangible book value per share(1)
$
13.14

 
$
12.67

 
$
12.06

 
$
11.43

 
$
10.81

 
$
2.33

21.6
 %
 
$
13.14

 
$
10.81

 
$
2.33

21.6
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning common shares outstanding
833.8

 
833.8

 
833.8

 
833.8

 
833.8

 

 %
 
833.8

 
705.3

 
128.5

18.2
 %
Issuance of common shares through initial public offering

 

 

 

 

 

 %
 

 
128.5

 
(128.5
)
(100.0
)%
Shares repurchased

 

 

 

 

 

 %
 

 

 

 %
Ending common shares outstanding
833.8

 
833.8

 
833.8

 
833.8

 
833.8

 

 %
 
833.8

 
833.8

 

 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding
833.8

 
833.8

 
833.8

 
833.8

 
833.8

 

 %
 
833.8

 
757.4

 
76.4

10.1
 %
Weighted average common shares outstanding (fully diluted)
835.8

 
835.8

 
835.4

 
835.0

 
834.3

 
1.5

0.2
 %
 
835.5

 
757.6

 
77.9

10.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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,
2015
 
Sep 30,
2015
 
Jun 30,
2015
 
Mar 31,
2015
 
Dec 31,
2014
 
4Q'15 vs. 4Q'14
 
Dec 31,
2015
 
Dec 31,
2014
 
YTD'15 vs. YTD'14
PERFORMANCE METRICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on assets(1)
2.6
%
 
2.9
%
 
2.9
%
 
3.0
%
 
2.7
%
 


(0.1
)%
 
2.9
%
 
3.2
%
 


(0.3
)%
Return on equity(2)
17.5
%
 
19.2
%
 
19.2
%
 
20.8
%
 
20.2
%
 


(2.7
)%
 
19.1
%
 
26.7
%
 


(7.6
)%
Return on tangible common equity(3)
20.1
%
 
22.0
%
 
22.2
%
 
24.1
%
 
23.4
%
 


(3.3
)%
 
22.0
%
 
32.4
%
 


(10.4
)%
Net interest margin(4)
15.73
%
 
15.97
%
 
15.77
%
 
15.79
%
 
15.60
%
 


0.13
 %
 
15.77
%
 
17.20
%
 


(1.43
)%
Efficiency ratio(5)
34.0
%
 
34.2
%
 
33.5
%
 
32.2
%
 
32.4
%
 


1.6
 %
 
33.5
%
 
31.7
%
 


1.8
 %
Other expense as a % of average loan receivables, including held for sale
5.28
%
 
5.35
%
 
5.37
%
 
5.06
%
 
5.16
%
 


0.12
 %
 
5.25
%
 
5.13
%
 


0.12
 %
Effective income tax rate
37.0
%
 
37.5
%
 
37.2
%
 
37.5
%
 
37.7
%
 


(0.7
)%
 
37.3
%
 
37.7
%
 


(0.4
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CREDIT QUALITY METRICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net charge-offs as a % of average loan receivables, including held for sale
4.23
%
 
4.02
%
 
4.63
%
 
4.53
%
 
4.32
%
 


(0.09
)%
 
4.33
%
 
4.51
%
 


(0.18
)%
30+ days past due as a % of period-end loan receivables(6)
4.06
%
 
4.02
%
 
3.53
%
 
3.79
%
 
4.14
%
 


(0.08
)%
 
4.06
%
 
4.14
%
 


(0.08
)%
90+ days past due as a % of period-end loan receivables(6)
1.86
%
 
1.73
%
 
1.52
%
 
1.81
%
 
1.90
%
 


(0.04
)%
 
1.86
%
 
1.90
%
 


(0.04
)%
Net charge-offs
$
697

 
$
633

 
$
693

 
$
668

 
$
663

 
$
34

5.1
 %
 
$
2,691

 
$
2,573

 
$
118

4.6
 %
Loan receivables delinquent over 30 days(6)
$
2,772

 
$
2,553

 
$
2,171

 
$
2,209

 
$
2,536

 
$
236

9.3
 %
 
$
2,772

 
$
2,536

 
$
236

9.3
 %
Loan receivables delinquent over 90 days(6)
$
1,273

 
$
1,102

 
$
933

 
$
1,056

 
$
1,162

 
$
111

9.6
 %
 
$
1,273

 
$
1,162

 
$
111

9.6
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses (period-end)
$
3,497

 
$
3,371

 
$
3,302

 
$
3,255

 
$
3,236

 
$
261

8.1
 %
 
$
3,497

 
$
3,236

 
$
261

8.1
 %
Allowance coverage ratio(7)
5.12
%
 
5.31
%
 
5.38
%
 
5.59
%
 
5.28
%
 


(0.16
)%
 
5.12
%
 
5.28
%
 


(0.16
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BUSINESS METRICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase volume(8)
$
32,460

 
$
29,206

 
$
28,810

 
$
23,139

 
$
30,081

 
$
2,379

7.9
 %
 
$
113,615

 
$
103,149

 
$
10,466

10.1
 %
Period-end loan receivables
$
68,290

 
$
63,520

 
$
61,431

 
$
58,248

 
$
61,286

 
$
7,004

11.4
 %
 
$
68,290

 
$
61,286

 
$
7,004

11.4
 %
Credit cards
$
65,773

 
$
60,920

 
$
58,827

 
$
55,866

 
$
58,880

 
$
6,893

11.7
 %
 
$
65,773

 
$
58,880

 
$
6,893

11.7
 %
Consumer installment loans
$
1,154

 
$
1,171

 
$
1,138

 
$
1,062

 
$
1,063

 
$
91

8.6
 %
 
$
1,154

 
$
1,063

 
$
91

8.6
 %
Commercial credit products
$
1,323

 
$
1,380

 
$
1,410

 
$
1,295

 
$
1,320

 
$
3

0.2
 %
 
$
1,323

 
$
1,320

 
$
3

0.2
 %
Other
$
40

 
$
49

 
$
56

 
$
25

 
$
23

 
$
17

73.9
 %
 
$
40

 
$
23

 
$
17

73.9
 %
Average loan receivables, including held for sale
$
65,406

 
$
62,504

 
$
60,094

 
$
59,775

 
$
59,547

 
$
5,859

9.8
 %
 
$
62,120

 
$
57,101

 
$
5,019

8.8
 %
Period-end active accounts (in thousands)(9)
68,314

 
62,831

 
61,718

 
59,761

 
64,286

 
4,028

6.3
 %
 
68,314

 
64,286

 
4,028

6.3
 %
Average active accounts (in thousands)(9)
64,892

 
62,247

 
60,923

 
61,604

 
61,667

 
3,225

5.2
 %
 
62,643

 
60,009

 
2,634

4.4
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIQUIDITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liquid assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and equivalents
$
12,325

 
$
12,271

 
$
10,621

 
$
11,218

 
$
11,828

 
$
497

4.2
 %
 
$
12,325

 
$
11,828

 
$
497

4.2
 %
Total liquid assets
$
14,836

 
$
15,305

 
$
13,660

 
$
13,813

 
$
12,942

 
$
1,894

14.6
 %
 
$
14,836

 
$
12,942

 
$
1,894

14.6
 %
Undrawn credit facilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Undrawn committed securitization financings
$
6,075

 
$
6,550

 
$
6,125

 
$
6,600

 
$
6,100

 
$
(25
)
(0.4
)%
 
$
6,075

 
$
6,100

 
$
(25
)
(0.4
)%
Total liquid assets and undrawn credit facilities
$
20,911

 
$
21,855

 
$
19,785

 
$
20,413

 
$
19,042

 
$
1,869

9.8
 %
 
$
20,911

 
$
19,042

 
$
1,869

9.8
 %
Liquid assets % of total assets
17.63
%
 
19.27
%
 
18.03
%
 
18.99
%
 
17.09
%
 


0.54
 %
 
17.63
%
 
17.09
%
 


0.54
 %
Liquid assets including undrawn committed securitization financings % of total assets
24.85
%
 
27.51
%
 
26.12
%
 
28.07
%
 
25.15
%
 


(0.30
)%
 
24.85
%
 
25.15
%
 


(0.30
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Return on assets represents net earnings as a percentage of average total assets.
(2) Return on equity represents net earnings as a percentage of average total equity.
(3) Return on tangible common equity represents net earnings as a percentage of average tangible common equity. Tangible Common Equity ("TCE") is a non-GAAP measure. For corresponding reconciliation of TCE to a GAAP financial measure, see
Reconciliation of Non-GAAP Measures and Calculations of Regulatory Measures.
(4) Net interest margin represents net interest income divided by average interest-earning assets.
(5) Efficiency ratio represents (i) other expense, divided by (ii) net interest income, after retailer share arrangements, plus other income.
(6) Based on customer statement-end balances extrapolated to the respective period-end date.
(7) Allowance coverage ratio represents allowance for loan losses divided by total period-end loan receivables.
(8) Purchase volume, or net credit sales, represents the aggregate amount of charges incurred on credit cards or other credit product accounts less returns during the period.
(9) 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,
2015
 
Sep 30,
2015
 
Jun 30,
2015
 
Mar 31,
2015
 
Dec 31,
2014
 
4Q'15 vs. 4Q'14
 
Dec 31,
2015
 
Dec 31,
2014
 
YTD'15 vs. YTD'14
Interest income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and fees on loans
$
3,494

 
$
3,379

 
$
3,166

 
$
3,140

 
$
3,252

 
$
242

7.4
 %
 
$
13,179

 
$
12,216

 
$
963

7.9
 %
Interest on investment securities
15

 
13

 
11

 
10

 
8

 
7

87.5
 %
 
49

 
26

 
23

88.5
 %
Total interest income
3,509

 
3,392

 
3,177

 
3,150

 
3,260

 
249

7.6
 %
 
13,228

 
12,242

 
986

8.1
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest on deposits
165

 
159

 
146

 
137

 
139

 
26

18.7
 %
 
607

 
470

 
137

29.1
 %
Interest on borrowings of consolidated securitization entities
56

 
54

 
53

 
52

 
57

 
(1
)
(1.8
)%
 
215

 
215

 

 %
Interest on third-party debt
80

 
76

 
71

 
82

 
78

 
2

2.6
 %
 
309

 
124

 
185

149.2
 %
Interest on related party debt

 

 

 
4

 
8

 
(8
)
(100.0
)%
 
4

 
113

 
(109
)
(96.5
)%
Total interest expense
301

 
289

 
270

 
275

 
282

 
19

6.7
 %
 
1,135

 
922

 
213

23.1
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income
3,208

 
3,103

 
2,907

 
2,875

 
2,978

 
230

7.7
 %
 
12,093

 
11,320

 
773

6.8
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Retailer share arrangements
(734
)
 
(723
)
 
(621
)
 
(660
)
 
(698
)
 
(36
)
5.2
 %
 
(2,738
)
 
(2,575
)
 
(163
)
6.3
 %
Net interest income, after retailer share arrangements
2,474

 
2,380

 
2,286

 
2,215

 
2,280

 
194

8.5
 %
 
9,355

 
8,745

 
610

7.0
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for loan losses
823

 
702

 
740

 
687

 
797

 
26

3.3
 %
 
2,952

 
2,917

 
35

1.2
 %
Net interest income, after retailer share arrangements and provision for loan losses
1,651

 
1,678

 
1,546

 
1,528

 
1,483

 
168

11.3
 %
 
6,403

 
5,828

 
575

9.9
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interchange revenue
147

 
135

 
123

 
100

 
120

 
27

22.5
 %
 
505

 
389

 
116

29.8
 %
Debt cancellation fees
62

 
61

 
61

 
65

 
67

 
(5
)
(7.5
)%
 
249

 
275

 
(26
)
(9.5
)%
Loyalty programs
(125
)
 
(122
)
 
(94
)
 
(78
)
 
(91
)
 
(34
)
37.4
 %
 
(419
)
 
(281
)
 
(138
)
49.1
 %
Other
3

 
10

 
30

 
14

 
66

 
(63
)
(95.5
)%
 
57

 
102

 
(45
)
(44.1
)%
Total other income
87

 
84

 
120

 
101

 
162

 
(75
)
(46.3
)%
 
392

 
485

 
(93
)
(19.2
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other expense:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Employee costs
285

 
268

 
250

 
239

 
227

 
58

25.6
 %
 
1,042

 
866

 
176

20.3
 %
Professional fees(1)
165

 
162

 
156

 
162

 
139

 
26

18.7
 %
 
645

 
563

 
82

14.6
 %
Marketing and business development
128

 
115

 
108

 
82

 
165

 
(37
)
(22.4
)%
 
433

 
460

 
(27
)
(5.9
)%
Information processing
83

 
77

 
74

 
63

 
60

 
23

38.3
 %
 
297

 
212

 
85

40.1
 %
Other(1)
209

 
221

 
217

 
200

 
201

 
8

4.0
 %
 
847

 
826

 
21

2.5
 %
Total other expense
870

 
843

 
805

 
746

 
792

 
78

9.8
 %
 
3,264

 
2,927

 
337

11.5
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings before provision for income taxes
868

 
919

 
861

 
883

 
853

 
15

1.8
 %
 
3,531

 
3,386

 
145

4.3
 %
Provision for income taxes
321

 
345

 
320

 
331

 
322

 
(1
)
(0.3
)%
 
1,317

 
1,277

 
40

3.1
 %
Net earnings attributable to common shareholders
$
547

 
$
574

 
$
541

 
$
552

 
$
531

 
$
16

3.0
 %
 
$
2,214

 
$
2,109

 
$
105

5.0
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) We have reclassified certain amounts within Professional fees to Other for all periods in 2014 to conform to the current period classifications.

3



SYNCHRONY FINANCIAL
 
 
 
 
 
 
 
 
 
 
 
 
STATEMENTS OF FINANCIAL POSITION
 
 
 
 
 
 
 
 
 
 
(unaudited, $ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
 
 
 
Dec 31,
2015
 
Sep 30,
2015
 
Jun 30,
2015
 
Mar 31,
2015
 
Dec 31,
2014
 
Dec 31, 2015 vs.
Dec 31, 2014
Assets
 
 
 
 
 
 
 
 
 
 
 
 
Cash and equivalents
$
12,325

 
$
12,271

 
$
10,621

 
$
11,218

 
$
11,828

 
$
497

4.2
 %
Investment securities
3,142

 
3,596

 
3,682

 
3,121

 
1,598

 
1,544

96.6
 %
Loan receivables:
 
 
 
 
 
 
 
 
 
 
 
 
Unsecuritized loans held for investment
42,826

 
38,325

 
36,019

 
33,424

 
34,335

 
8,491

24.7
 %
Restricted loans of consolidated securitization entities
25,464

 
25,195

 
25,412

 
24,824

 
26,951

 
(1,487
)
(5.5
)%
Total loan receivables
68,290

 
63,520

 
61,431

 
58,248

 
61,286

 
7,004

11.4
 %
Less: Allowance for loan losses
(3,497
)
 
(3,371
)
 
(3,302
)
 
(3,255
)
 
(3,236
)
 
(261
)
8.1
 %
Loan receivables, net
64,793

 
60,149

 
58,129

 
54,993

 
58,050

 
6,743

11.6
 %
Loan receivables held for sale

 

 

 
359

 
332

 
(332
)
(100.0
)%
Goodwill
949

 
949

 
949

 
949

 
949

 

 %
Intangible assets, net
701

 
646

 
575

 
557

 
519

 
182

35.1
 %
Other assets
2,225

 
1,831

 
1,794

 
1,524

 
2,431

 
(206
)
(8.5
)%
Total assets
$
84,135

 
$
79,442

 
$
75,750

 
$
72,721

 
$
75,707

 
$
8,428

11.1
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and Equity
 
 
 
 
 
 
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposit accounts
$
43,295

 
$
40,408

 
$
37,629

 
$
34,788

 
$
34,847

 
$
8,448

24.2
 %
Non-interest-bearing deposit accounts
152

 
140

 
143

 
162

 
108

 
44

40.7
 %
Total deposits
43,447

 
40,548

 
37,772

 
34,950

 
34,955

 
8,492

24.3
 %
Borrowings:
 
 
 
 
 
 
 
 
 
 
 
 
Borrowings of consolidated securitization entities
13,603

 
13,640

 
13,948

 
13,817

 
14,967

 
(1,364
)
(9.1
)%
Bank term loan
4,151

 
4,651

 
5,151

 
5,651

 
8,245

 
(4,094
)
(49.7
)%
Senior unsecured notes
6,590

 
5,590

 
4,593

 
4,592

 
3,593

 
2,997

83.4
 %
Related party debt

 

 

 

 
655

 
(655
)
(100.0
)%
Total borrowings
24,344

 
23,881

 
23,692

 
24,060

 
27,460

 
(3,116
)
(11.3
)%
Accrued expenses and other liabilities
3,740

 
2,855

 
2,708

 
2,675

 
2,814

 
926

32.9
 %
Total liabilities
71,531

 
67,284

 
64,172

 
61,685

 
65,229

 
6,302

9.7
 %
Equity:
 
 
 
 
 
 
 
 
 
 
 
 
Common stock
1

 
1

 
1

 
1

 
1

 

 %
Additional paid-in capital
9,351

 
9,431

 
9,422

 
9,418

 
9,408

 
(57
)
(0.6
)%
Retained earnings
3,293

 
2,746

 
2,172

 
1,631

 
1,079

 
2,214

NM

Accumulated other comprehensive income:
(41
)
 
(20
)
 
(17
)
 
(14
)
 
(10
)
 
(31
)
NM

Total equity
12,604

 
12,158

 
11,578

 
11,036

 
10,478

 
2,126

20.3
 %
Total liabilities and equity
$
84,135

 
$
79,442

 
$
75,750

 
$
72,721

 
$
75,707

 
$
8,428

11.1
 %
 
 
 
 
 
 
 
 
 
 
 
 
 

4



SYNCHRONY FINANCIAL
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AVERAGE BALANCES, NET INTEREST INCOME AND NET INTEREST MARGIN
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(unaudited, $ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
Dec 31, 2015
 
Sep 30, 2015
 
Jun 30, 2015
 
Mar 31, 2015
 
Dec 31, 2014
 
 
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
$
12,070

 
$
9

 
0.30
%
 
$
11,059

 
$
7

 
0.25
%
 
$
10,728

 
$
6

 
0.22
%
 
$
11,331

 
$
6

 
0.21
%
 
$
13,631

 
$
7

 
0.20
%
Securities available for sale
3,445

 
6

 
0.69
%
 
3,534

 
6

 
0.67
%
 
3,107

 
5

 
0.65
%
 
2,725

 
4

 
0.60
%
 
962

 
1

 
0.40
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loan receivables:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit cards, including held for sale
62,834

 
3,432

 
21.67
%
 
59,890

 
3,315

 
21.96
%
 
57,588

 
3,106

 
21.63
%
 
57,390

 
3,079

 
21.76
%
 
57,075

 
3,186

 
21.68
%
Consumer installment loans
1,163

 
26

 
8.87
%
 
1,160

 
27

 
9.23
%
 
1,101

 
26

 
9.47
%
 
1,057

 
25

 
9.59
%
 
1,072

 
27

 
9.78
%
Commercial credit products
1,361

 
36

 
10.49
%
 
1,400

 
36

 
10.20
%
 
1,372

 
34

 
9.94
%
 
1,305

 
36

 
11.19
%
 
1,379

 
38

 
10.70
%
Other
48

 

 
%
 
54

 
1

 
NM

 
33

 

 
%
 
23

 

 
%
 
21

 
1

 
NM

Total loan receivables, including held for sale
65,406

 
3,494

 
21.19
%
 
62,504

 
3,379

 
21.45
%
 
60,094

 
3,166

 
21.13
%
 
59,775

 
3,140

 
21.30
%
 
59,547

 
3,252

 
21.21
%
Total interest-earning assets
80,921

 
3,509

 
17.20
%
 
77,097

 
3,392

 
17.46
%
 
73,929

 
3,177

 
17.24
%
 
73,831

 
3,150

 
17.30
%
 
74,140

 
3,260

 
17.07
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
1,268

 
 
 
 
 
1,216

 
 
 
 
 
583

 
 
 
 
 
497

 
 
 
 
 
1,220

 
 
 
 
Allowance for loan losses
(3,440
)
 
 
 
 
 
(3,341
)
 
 
 
 
 
(3,285
)
 
 
 
 
 
(3,272
)
 
 
 
 
 
(3,160
)
 
 
 
 
Other assets
3,280

 
 
 
 
 
3,023

 
 
 
 
 
2,916

 
 
 
 
 
2,802

 
 
 
 
 
2,831

 
 
 
 
Total non-interest-earning assets
1,108

 
 
 
 
 
898

 
 
 
 
 
214

 
 
 
 
 
27

 
 
 
 
 
891

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
82,029

 
 
 
 
 
$
77,995

 
 
 
 
 
$
74,143

 
 
 
 
 
$
73,858

 
 
 
 
 
$
75,031

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposit accounts
$
42,162

 
$
165

 
1.55
%
 
$
39,136

 
$
159

 
1.61
%
 
$
35,908

 
$
146

 
1.63
%
 
$
34,981

 
$
137

 
1.59
%
 
$
33,980

 
$
139

 
1.59
%
Borrowings of consolidated securitization entities
13,565

 
56

 
1.64
%
 
13,730

 
54

 
1.56
%
 
14,026

 
53

 
1.52
%
 
14,101

 
52

 
1.50
%
 
14,766

 
57

 
1.50
%
Bank term loan(1)
4,526

 
28

 
2.45
%
 
4,901

 
29

 
2.35
%
 
5,401

 
32

 
2.38
%
 
6,531

 
47

 
2.92
%
 
8,057

 
46

 
2.22
%
Senior unsecured notes
5,840

 
52

 
3.53
%
 
5,340

 
47

 
3.49
%
 
4,592

 
39

 
3.41
%
 
4,093

 
35

 
3.47
%
 
3,593

 
32

 
3.46
%
Related party debt

 

 
%
 

 

 
%
 

 

 
%
 
407

 
4

 
3.99
%
 
843

 
8

 
3.68
%
Total interest-bearing liabilities
66,093

 
301

 
1.81
%
 
63,107

 
289

 
1.82
%
 
59,927

 
270

 
1.81
%
 
60,113

 
275

 
1.86
%
 
61,239

 
282

 
1.79
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest-bearing liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest-bearing deposit accounts
147

 
 
 
 
 
149

 
 
 
 
 
166

 
 
 
 
 
142

 
 
 
 
 
182

 
 
 
 
Other liabilities
3,396

 
 
 
 
 
2,859

 
 
 
 
 
2,750

 
 
 
 
 
2,854

 
 
 
 
 
3,382

 
 
 
 
Total non-interest-bearing liabilities
3,543

 
 
 
 
 
3,008

 
 
 
 
 
2,916

 
 
 
 
 
2,996

 
 
 
 
 
3,564

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities
69,636

 
 
 
 
 
66,115

 
 
 
 
 
62,843

 
 
 
 
 
63,109

 
 
 
 
 
64,803

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total equity
12,393

 
 
 
 
 
11,880

 
 
 
 
 
11,300

 
 
 
 
 
10,749

 
 
 
 
 
10,228

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities and equity
$
82,029

 
 
 
 
 
$
77,995

 
 
 
 
 
$
74,143

 
 
 
 
 
$
73,858

 
 
 
 
 
$
75,031

 
 
 
 
Net interest income
 
 
$
3,208

 
 
 
 
 
$
3,103

 
 
 
 
 
$
2,907

 
 
 
 
 
$
2,875

 
 
 
 
 
$
2,978

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate spread(2)
 
 
 
 
15.39
%
 
 
 
 
 
15.64
%
 
 
 
 
 
15.43
%
 
 
 
 
 
15.44
%
 
 
 
 
 
15.28
%
Net interest margin(3)
 
 
 
 
15.73
%
 
 
 
 
 
15.97
%
 
 
 
 
 
15.77
%
 
 
 
 
 
15.79
%
 
 
 
 
 
15.60
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Average interest rate on liabilities calculated above utilizes monthly average balances. The effective interest rates for the Bank term loan for the quarters ended December 31, 2015, September 30, 2015, June 30, 2015, March 31, 2015, and December 31, 2014 were 2.26%,
2.23%, 2.21%, 2.21%, and 2.19%, respectively. The Bank term loan effective rate excludes the impact of charges incurred in connection with prepayments of the loan.
(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, 2015
 
Twelve Months Ended
Dec 31, 2014
 
 
 
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
$
11,406

 
$
28

 
0.25
%
 
$
8,230

 
$
16

 
0.19
%
Securities available for sale
3,142

 
21

 
0.67
%
 
487

 
10

 
2.05
%
 
 
 
 
 
 
 
 
 
 
 
 
Loan receivables:
 
 
 
 
 
 
 
 
 
 
 
Credit cards, including held for sale
59,603

 
12,932

 
21.70
%
 
54,686

 
11,967

 
21.88
%
Consumer installment loans
1,119

 
104

 
9.29
%
 
1,025

 
99

 
9.66
%
Commercial credit products
1,359

 
142

 
10.45
%
 
1,373

 
149

 
10.85
%
Other
39

 
1

 
2.56
%
 
17

 
1

 
5.88
%
Total loan receivables, including held for sale
62,120

 
13,179

 
21.22
%
 
57,101

 
12,216

 
21.39
%
Total interest-earning assets
76,668

 
13,228

 
17.25
%
 
65,818

 
12,242

 
18.60
%
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
904

 
 
 
 
 
881

 
 
 
 
Allowance for loan losses
(3,340
)
 
 
 
 
 
(3,039
)
 
 
 
 
Other assets
3,013

 
 
 
 
 
2,492

 
 
 
 
Total non-interest-earning assets
577

 
 
 
 
 
334

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
77,245

 
 
 
 
 
$
66,152

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposit accounts
$
38,148

 
$
607

 
1.59
%
 
$
30,110

 
$
470

 
1.56
%
Borrowings of consolidated securitization entities
13,868

 
215

 
1.55
%
 
14,835

 
215

 
1.45
%
Bank term loan(1)
5,383

 
136

 
2.53
%
 
3,056

 
74

 
2.42
%
Senior unsecured notes
4,976

 
173

 
3.48
%
 
1,382

 
50

 
3.62
%
Related party debt
125

 
4

 
3.20
%
 
5,335

 
113

 
2.12
%
Total interest-bearing liabilities
62,500

 
1,135

 
1.82
%
 
54,718

 
922

 
1.69
%
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest-bearing liabilities
 
 
 
 
 
 
 
 
 
 
 
Non-interest-bearing deposit accounts
152

 
 
 
 
 
240

 
 
 
 
Other liabilities
3,015

 
 
 
 
 
3,306

 
 
 
 
Total non-interest-bearing liabilities
3,167

 
 
 
 
 
3,546

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities
65,667

 
 
 
 
 
58,264

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
 
 
 
 
Total equity
11,578

 
 
 
 
 
7,888

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities and equity
$
77,245

 
 
 
 
 
$
66,152

 
 
 
 
Net interest income
 
 
$
12,093

 
 
 
 
 
$
11,320

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate spread(2)
 
 
 
 
15.43
%
 
 
 
 
 
16.91
%
Net interest margin(3)
 
 
 
 
15.77
%
 
 
 
 
 
17.20
%
 
 
 
 
 
 
 
 
 
 
 
 
(1) Average interest rate on liabilities calculated above utilizes monthly average balances. The effective interest rates for the Bank term loan for the 12 months ended December 31, 2015 and December 31,
2014 were 2.23% and 2.20%, respectively. The Bank term loan effective rate excludes the impact of charges incurred in connection with prepayments of the loan.
(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,
2015
 
Sep 30,
2015
 
Jun 30,
2015
 
Mar 31,
2015
 
Dec 31,
2014
 
Dec 31, 2015 vs.
Dec 31, 2014
BALANCE SHEET STATISTICS
 
 
 
 
 
 
 
 
 
 
 
 
Total common equity
$
12,604

 
$
12,158

 
$
11,578

 
$
11,036

 
$
10,478

 
$
2,126

20.3
%
Total common equity as a % of total assets
14.98
%
 
15.30
%
 
15.28
%
 
15.18
%
 
13.84
%
 

1.14
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Tangible assets
$
82,485

 
$
77,847

 
$
74,226

 
$
71,215

 
$
74,239

 
$
8,246

11.1
%
Tangible common equity(1)
$
10,954

 
$
10,563

 
$
10,054

 
$
9,530

 
$
9,010

 
$
1,944

21.6
%
Tangible common equity as a % of tangible assets(1)
13.28
%
 
13.57
%
 
13.55
%
 
13.38
%
 
12.14
%
 

1.14
%
Tangible common equity per share(1)
$
13.14

 
$
12.67

 
$
12.06

 
$
11.43

 
$
10.81

 
$
2.33

21.6
%
 
 
 
 
 
 
 
 
 
 
 
 
 
REGULATORY CAPITAL RATIOS(2)
 
 
 
 
 
 
 
 
 
 
 
 

Basel III Transition
 
Basel I
 
 
 
Total risk-based capital ratio(3)(8)
18.1
%
 
18.8
%
 
18.5
%
 
18.2
%
 
16.2
%
 
 
 
Tier 1 risk-based capital ratio(4)(8)
16.8
%
 
17.5
%
 
17.2
%
 
16.9
%
 
14.9
%
 
 
 
Tier 1 common ratio(5)(8)
n/a

 
n/a

 
n/a

 
16.9
%
 
14.9
%
 
 
 
Tier 1 leverage ratio(6)(8)
14.3
%
 
14.6
%
 
14.6
%
 
13.7
%
 
12.5
%
 
 
 
Common equity Tier 1 capital ratio(7)(8)
16.8
%
 
17.5
%
 
17.2
%
 
n/a

 
n/a

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Basel III Fully Phased-in
 
 
 
Common equity Tier 1 capital ratio(7)
15.9
%
 
16.6
%
 
16.4
%
 
16.4
%
 
14.5
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Tangible common equity ("TCE") is a non-GAAP measure. We believe TCE is a more meaningful measure of the net asset value of the Company to investors. For corresponding reconciliation of TCE to a
GAAP financial measure, see Reconciliation of Non-GAAP Measures and Calculations of Regulatory Measures.
(2) Regulatory capital metrics at December 31, 2015 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 prior to December 31, 2015, 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 reported under Basel III transition rules is calculated based on Tier 1 capital divided by total average assets, after certain adjustments. Total assets, after certain adjustments is used as the
denominator for prior periods calculated under Basel I rules.
(7) Common equity Tier 1 capital ratio is the ratio of common equity Tier 1 capital to total risk-weighted assets, each as calculated under Basel III rules. Common equity Tier 1 capital ratio (fully phased-in) is a
preliminary estimate reflecting management’s interpretation of the final Basel III 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.
(8) Beginning June 30, 2015, regulatory capital ratios are calculated under Basel III rules subject to transition provisions. The Company reported under Basel I rules for periods prior to June 30, 2015.

7



SYNCHRONY FINANCIAL
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PLATFORM RESULTS AND RECONCILIATION OF NON-GAAP MEASURES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(unaudited, $ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
 
 
 
Twelve Months Ended
 
 
 
 
Dec 31,
2015
 
Sep 30,
2015
 
Jun 30,
2015
 
Mar 31,
2015
 
Dec 31,
2014
 
4Q'15 vs. 4Q'14
 
Dec 31,
2015
 
Dec 31,
2014
 
YTD'15 vs. YTD'14
RETAIL CARD
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase volume(1)(2)
$
26,768

 
$
23,560

 
$
23,452

 
$
18,410

 
$
24,855

 
$
1,913

7.7
 %
 
$
92,190

 
$
83,591

 
$
8,599

10.3
 %
Period-end loan receivables
$
47,412

 
$
43,432

 
$
42,315

 
$
39,685

 
$
42,308

 
$
5,104

12.1
 %
 
$
47,412

 
$
42,308

 
$
5,104

12.1
 %
Average loan receivables, including held for sale
$
44,958

 
$
42,933

 
$
41,303

 
$
40,986

 
$
40,929

 
$
4,029

9.8
 %
 
$
42,687

 
$
39,278

 
$
3,409

8.7
 %
Average active accounts (in thousands)(2)(3)
52,038

 
49,953

 
48,981

 
49,617

 
49,871

 
2,167

4.3
 %
 
50,358

 
48,599

 
1,759

3.6
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and fees on loans(2)
$
2,594

 
$
2,508

 
$
2,335

 
$
2,337

 
$
2,405

 
$
189

7.9
 %
 
$
9,774

 
$
9,040

 
$
734

8.1
 %
Other income(2)
76

 
70

 
107

 
86

 
141

 
(65
)
(46.1
)%
 
339

 
407

 
(68
)
(16.7
)%
Platform revenue, excluding retailer share arrangements(2)
2,670

 
2,578

 
2,442

 
2,423

 
2,546

 
124

4.9
 %
 
10,113

 
9,447

 
666

7.0
 %
Retailer share arrangements(2)
(723
)
 
(708
)
 
(606
)
 
(651
)
 
(686
)
 
(37
)
5.4
 %
 
(2,688
)
 
(2,530
)
 
(158
)
6.2
 %
Platform revenue(2)
$
1,947

 
$
1,870

 
$
1,836

 
$
1,772

 
$
1,860

 
$
87

4.7
 %
 
$
7,425

 
$
6,917

 
$
508

7.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PAYMENT SOLUTIONS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase volume(1)
$
3,714

 
$
3,635

 
$
3,371

 
$
2,948

 
$
3,419

 
$
295

8.6
 %
 
$
13,668

 
$
12,447

 
$
1,221

9.8
 %
Period-end loan receivables
$
13,543

 
$
12,933

 
$
12,194

 
$
11,833

 
$
12,095

 
$
1,448

12.0
 %
 
$
13,543

 
$
12,095

 
$
1,448

12.0
 %
Average loan receivables
$
13,192

 
$
12,523

 
$
11,971

 
$
11,970

 
$
11,772

 
$
1,420

12.1
 %
 
$
12,436

 
$
11,171

 
$
1,265

11.3
 %
Average active accounts (in thousands)(3)
7,896

 
7,468

 
7,231

 
7,271

 
7,113

 
783

11.0
 %
 
7,478

 
6,869

 
609

8.9
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and fees on loans
$
462

 
$
442

 
$
412

 
$
403

 
$
426

 
$
36

8.5
 %
 
$
1,719

 
$
1,582

 
$
137

8.7
 %
Other income
3

 
5

 
4

 
5

 
9

 
(6
)
(66.7
)%
 
17

 
32

 
(15
)
(46.9
)%
Platform revenue, excluding retailer share arrangements
465

 
447

 
416

 
408

 
435

 
30

6.9
 %
 
1,736

 
1,614

 
122

7.6
 %
Retailer share arrangements
(10
)
 
(13
)
 
(14
)
 
(8
)
 
(11
)
 
1

(9.1
)%
 
(45
)
 
(41
)
 
(4
)
9.8
 %
Platform revenue
$
455

 
$
434

 
$
402

 
$
400

 
$
424

 
$
31

7.3
 %
 
$
1,691

 
$
1,573

 
$
118

7.5
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CARECREDIT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase volume(1)
$
1,978

 
$
2,011

 
$
1,987

 
$
1,781

 
$
1,807

 
$
171

9.5
 %
 
$
7,757

 
$
7,111

 
$
646

9.1
 %
Period-end loan receivables
$
7,335

 
$
7,155

 
$
6,922

 
$
6,730

 
$
6,883

 
$
452

6.6
 %
 
$
7,335

 
$
6,883

 
$
452

6.6
 %
Average loan receivables
$
7,256

 
$
7,048

 
$
6,820

 
$
6,819

 
$
6,846

 
$
410

6.0
 %
 
$
6,997

 
$
6,652

 
$
345

5.2
 %
Average active accounts (in thousands)(3)
4,958

 
4,826

 
4,711

 
4,716

 
4,683

 
275

5.9
 %
 
4,807

 
4,541

 
266

5.9
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and fees on loans
$
438

 
$
429

 
$
419

 
$
400

 
$
421

 
$
17

4.0
 %
 
$
1,686

 
$
1,594

 
$
92

5.8
 %
Other income
8

 
9

 
9

 
10

 
12

 
(4
)
(33.3
)%
 
36

 
46

 
(10
)
(21.7
)%
Platform revenue, excluding retailer share arrangements
446

 
438

 
428

 
410

 
433

 
13

3.0
 %
 
1,722

 
1,640

 
82

5.0
 %
Retailer share arrangements
(1
)
 
(2
)
 
(1
)
 
(1
)
 
(1
)
 

 %
 
(5
)
 
(4
)
 
(1
)
25.0
 %
Platform revenue
$
445

 
$
436

 
$
427

 
$
409

 
$
432

 
$
13

3.0
 %
 
$
1,717

 
$
1,636

 
$
81

5.0
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL SYF
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase volume(1)(2)
$
32,460

 
$
29,206

 
$
28,810

 
$
23,139

 
$
30,081

 
$
2,379

7.9
 %
 
$
113,615

 
$
103,149

 
$
10,466

10.1
 %
Period-end loan receivables
$
68,290

 
$
63,520

 
$
61,431

 
$
58,248

 
$
61,286

 
$
7,004

11.4
 %
 
$
68,290

 
$
61,286

 
$
7,004

11.4
 %
Average loan receivables, including held for sale
$
65,406

 
$
62,504

 
$
60,094

 
$
59,775

 
$
59,547

 
$
5,859

9.8
 %
 
$
62,120

 
$
57,101

 
$
5,019

8.8
 %
Average active accounts (in thousands)(2)(3)
64,892

 
62,247

 
60,923

 
61,604

 
61,667

 
3,225

5.2
 %
 
62,643

 
60,009

 
2,634

4.4
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and fees on loans(2)
$
3,494

 
$
3,379

 
$
3,166

 
$
3,140

 
$
3,252

 
$
242

7.4
 %
 
$
13,179

 
$
12,216

 
$
963

7.9
 %
Other income(2)
87

 
84

 
120

 
101

 
162

 
(75
)
(46.3
)%
 
392

 
485

 
(93
)
(19.2
)%
Platform revenue, excluding retailer share arrangements(2)
3,581

 
3,463

 
3,286

 
3,241

 
3,414

 
167

4.9
 %
 
13,571

 
12,701

 
870

6.8
 %
Retailer share arrangements(2)
(734
)
 
(723
)
 
(621
)
 
(660
)
 
(698
)
 
(36
)
5.2
 %
 
(2,738
)
 
(2,575
)
 
(163
)
6.3
 %
Platform revenue(2)
$
2,847

 
$
2,740

 
$
2,665

 
$
2,581

 
$
2,716

 
$
131

4.8
 %
 
$
10,833

 
$
10,126

 
$
707

7.0
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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(1)
 
 
 
 
(unaudited, $ in millions, except per share statistics)
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
Dec 31,
2015
 
Sep 30,
2015
 
Jun 30,
2015
 
Mar 31,
2015
 
Dec 31,
2014
COMMON EQUITY MEASURES
 
 
 
 
 
 
 
 
 
GAAP Total common equity
$
12,604

 
$
12,158

 
$
11,578

 
$
11,036

 
$
10,478

Less: Goodwill
(949
)
 
(949
)
 
(949
)
 
(949
)
 
(949
)
Less: Intangible assets, net
(701
)
 
(646
)
 
(575
)
 
(557
)
 
(519
)
Tangible common equity
$
10,954

 
$
10,563

 
$
10,054

 
$
9,530

 
$
9,010

Adjustments for certain other intangible assets, deferred tax liabilities
and certain items in accumulated comprehensive income (loss)
 
 
 
 
 
 
293

 
287

Basel I - Tier 1 capital and Tier 1 common equity

 

 
 
 
$
9,823

 
$
9,297

Adjustments for certain other intangible assets and deferred tax liabilities
 
 
 
 
 
 
(12
)
 
(20
)
 
 
 
 
 
 
 
 
 
 
Adjustments for certain deferred tax liabilities and certain items in accumulated comprehensive income (loss)
280

 
291

 
293

 
 
 
 
Basel III - Common equity Tier 1 (fully phased-in)
$
11,234

 
$
10,854

 
$
10,347

 
$
9,811

 
$
9,277

Adjustment related to capital components during transition
399

 
375

 
331

 
 
 
 
Basel III - Common equity Tier I (transition)
$
11,633

 
$
11,229

 
$
10,678

 
 
 
 
 
 
 
 
 
 
 
 
 
 
RISK-BASED CAPITAL
 
 
 
 
 
 
 
 
 
Tier 1 capital and Tier 1 common equity(2)
$
11,633

 
$
11,229

 
$
10,678

 
$
9,823

 
$
9,297

Add: Allowance for loan losses includible in risk-based capital
900

 
835

 
806

 
759

 
809

Risk-based capital(2)
$
12,533

 
$
12,064

 
$
11,484

 
$
10,582

 
$
10,106

 
 
 
 
 
 
 
 
 
 
ASSET MEASURES
 
 
 
 
 
 
 
 
 
Total assets(3)
$
82,029

 
$
77,995

 
$
74,143

 
$
72,721

 
$
75,707

Adjustments for:
 
 
 
 
 
 
 
 
 
Disallowed goodwill and other disallowed intangible assets, net of
related deferred tax liabilities
(992
)
 
(931
)
 
(903
)
 
(1,213
)
 
(1,181
)
Other
92

 
104

 
60

 
136

 
79

Total assets for leverage purposes(2)
$
81,129

 
$
77,168

 
$
73,300

 
$
71,644

 
$
74,605

 
 
 
 
 
 
 
 
 
 
Risk-weighted assets - Basel I
n/a

 
n/a

 
n/a

 
$
58,184

 
$
62,270

Risk-weighted assets - Basel III (fully phased-in)(4)
$
70,654

 
$
65,278

 
$
62,970

 
$
59,926

 
$
64,162

Risk-weighted assets - Basel III (transition)(4)
$
69,386

 
$
64,244

 
$
61,985

 
n/a

 
n/a

 
 
 
 
 
 
 
 
 
 
TANGIBLE COMMON EQUITY PER SHARE
 
 
 
 
 
 
 
 
 
GAAP book value per share
$
15.12

 
$
14.58

 
$
13.89

 
$
13.24

 
$
12.57

Less: Goodwill
(1.14
)
 
(1.14
)
 
(1.14
)
 
(1.14
)
 
(1.14
)
Less: Intangible assets, net
(0.84
)
 
(0.77
)
 
(0.69
)
 
(0.67
)
 
(0.62
)
Tangible common equity per share
$
13.14

 
$
12.67

 
$
12.06

 
$
11.43

 
$
10.81

 
 
 
 
 
 
 
 
 
 
(1) Regulatory capital metrics at December 31, 2015 are preliminary and therefore subject to change.
(2) Beginning June 30, 2015, regulatory capital amounts are calculated under Basel III rules subject to transition provisions. The company reported under Basel I rules for periods prior to June 30, 2015.
(3) Represents total average assets beginning June 30, 2015 and total assets for all periods prior to June 30, 2015.
(4) Key differences between Basel III transitional rules and fully phased-in Basel III rules in the calculation of risk-weighted assets include, but not limited to, risk weighting of deferred tax assets and adjustments for
certain intangible assets.

9