Exhibit 99.2


SYNCHRONY FINANCIAL
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL SUMMARY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(unaudited, in millions, except per share statistics)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
 
 
Nine Months Ended
 
 
 
 
Sep 30,
2017
 
Jun 30,
2017
 
Mar 31,
2017
 
Dec 31,
2016
 
Sep 30,
2016
 
3Q'17 vs. 3Q'16
 
Sep 30,
2017
 
Sep 30,
2016
 
YTD'17 vs. YTD'16
EARNINGS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income
$
3,876

 
$
3,637

 
$
3,587

 
$
3,628

 
$
3,481

 
$
395

11.3
 %
 
$
11,100

 
$
9,902

 
$
1,198

12.1
 %
Retailer share arrangements
(805
)
 
(669
)
 
(684
)
 
(811
)
 
(757
)
 
(48
)
6.3
 %
 
(2,158
)
 
(2,091
)
 
(67
)
3.2
 %
Net interest income, after retailer share arrangements
3,071

 
2,968

 
2,903

 
2,817

 
2,724

 
347

12.7
 %
 
8,942

 
7,811

 
1,131

14.5
 %
Provision for loan losses
1,310

 
1,326

 
1,306

 
1,076

 
986

 
324

32.9
 %
 
3,942

 
2,910

 
1,032

35.5
 %
Net interest income, after retailer share arrangements and provision for loan losses
1,761

 
1,642

 
1,597

 
1,741

 
1,738

 
23

1.3
 %
 
5,000

 
4,901

 
99

2.0
 %
Other income
76

 
57

 
93

 
85

 
84

 
(8
)
(9.5
)%
 
226

 
259

 
(33
)
(12.7
)%
Other expense
958

 
911

 
908

 
918

 
859

 
99

11.5
 %
 
2,777

 
2,498

 
279

11.2
 %
Earnings before provision for income taxes
879

 
788

 
782

 
908

 
963

 
(84
)
(8.7
)%
 
2,449

 
2,662

 
(213
)
(8.0
)%
Provision for income taxes
324

 
292

 
283

 
332

 
359

 
(35
)
(9.7
)%
 
899

 
987

 
(88
)
(8.9
)%
Net earnings
$
555

 
$
496

 
$
499

 
$
576

 
$
604

 
$
(49
)
(8.1
)%
 
$
1,550

 
$
1,675

 
$
(125
)
(7.5
)%
Net earnings attributable to common stockholders
$
555

 
$
496

 
$
499

 
$
576

 
$
604

 
$
(49
)
(8.1
)%
 
$
1,550


$
1,675


$
(125
)
(7.5
)%
 


 


 


 
 
 
 
 
 
 
 


 


 


 
COMMON SHARE STATISTICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic EPS
$
0.70

 
$
0.62

 
$
0.61

 
$
0.70

 
$
0.73

 
$
(0.03
)
(4.1
)%
 
$
1.93

 
$
2.01

 
$
(0.08
)
(4.0
)%
Diluted EPS
$
0.70

 
$
0.61

 
$
0.61

 
$
0.70

 
$
0.73

 
$
(0.03
)
(4.1
)%
 
$
1.93

 
$
2.01

 
$
(0.08
)
(4.0
)%
Dividend declared per share
$
0.15

 
$
0.13

 
$
0.13

 
$
0.13

 
$
0.13

 
$
0.02

15.4
 %
 
$
0.41

 
$
0.13

 
$
0.28

NM

Common stock price
$
31.05

 
$
29.82

 
$
34.30

 
$
36.27

 
$
28.00

 
$
3.05

10.9
 %
 
$
31.05

 
$
28.00

 
$
3.05

10.9
 %
Book value per share
$
18.40

 
$
18.02

 
$
17.71

 
$
17.37

 
$
16.94

 
$
1.46

8.6
 %
 
$
18.40

 
$
16.94

 
$
1.46

8.6
 %
Tangible common equity per share(1)
$
16.15

 
$
15.79

 
$
15.47

 
$
15.34

 
$
14.90

 
$
1.25

8.4
 %
 
$
16.15

 
$
14.90

 
$
1.25

8.4
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning common shares outstanding
795.3

 
810.8

 
817.4

 
825.5

 
833.9

 
(38.6
)
(4.6
)%
 
817.4

 
833.8

 
(16.4
)
(2.0
)%
Issuance of common shares
—

 
—

 
—

 
—

 
—

 
—

—
 %
 
—

 
—

 
—

—
 %
Stock-based compensation
0.1

 
0.2

 
—

 
—

 
0.1

 
—

—
 %
 
0.3

 
0.2

 
0.1

50.0
 %
Shares repurchased
(12.8
)
 
(15.7
)
 
(6.6
)
 
(8.1
)
 
(8.5
)
 
(4.3
)
50.6
 %
 
(35.1
)
 
(8.5
)
 
(26.6
)
NM

Ending common shares outstanding
782.6

 
795.3

 
810.8

 
817.4

 
825.5

 
(42.9
)
(5.2
)%
 
782.6

 
825.5

 
(42.9
)
(5.2
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding
787.3

 
804.0

 
813.1

 
820.5

 
828.4

 
(41.1
)
(5.0
)%
 
801.3

 
832.1

 
(30.8
)
(3.7
)%
Weighted average common shares outstanding (fully diluted)
790.9

 
807.4

 
817.1

 
823.8

 
830.6

 
(39.7
)
(4.8
)%
 
805.0

 
834.1

 
(29.1
)
(3.5
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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
 
 
 
 
Nine Months Ended
 
 
 
 
Sep 30,
2017
 
Jun 30,
2017
 
Mar 31,
2017
 
Dec 31,
2016
 
Sep 30,
2016
 
3Q'17 vs. 3Q'16
 
Sept 30,
2017
 
Sept 30,
2016
 
YTD'17 vs. YTD'16
PERFORMANCE METRICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on assets(1)
2.4
%
 
2.2
%
 
2.3
%
 
2.6
%
 
2.8
%
 


(0.4
)%
 
2.3
%
 
2.7
%
 


(0.4
)%
Return on equity(2)
15.3
%
 
13.8
%
 
14.1
%
 
16.2
%
 
17.3
%
 


(2.0
)%
 
14.4
%
 
16.6
%
 


(2.2
)%
Return on tangible common equity(3)
17.4
%
 
15.7
%
 
16.1
%
 
18.4
%
 
19.6
%
 


(2.2
)%
 
16.4
%
 
18.9
%
 


(2.5
)%
Net interest margin(4)
16.74
%
 
16.20
%
 
16.18
%
 
16.26
%
 
16.34
%
 


0.40
 %
 
16.38
%
 
16.05
%
 


0.33
 %
Efficiency ratio(5)
30.4
%
 
30.1
%
 
30.3
%
 
31.6
%
 
30.6
%
 


(0.2
)%
 
30.3
%
 
31.0
%
 


(0.7
)%
Other expense as a % of average loan receivables, including held for sale
4.99
%
 
4.93
%
 
4.97
%
 
5.04
%
 
4.93
%
 


0.06
 %
 
4.96
%
 
4.95
%
 


0.01
 %
Effective income tax rate
36.9
%
 
37.1
%
 
36.2
%
 
36.6
%
 
37.3
%
 


(0.4
)%
 
36.7
%
 
37.1
%
 


(0.4
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CREDIT QUALITY METRICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net charge-offs as a % of average loan receivables, including held for sale
4.95
%
 
5.42
%
 
5.33
%
 
4.65
%
 
4.39
%
 


0.56
 %
 
5.23
%
 
4.54
%
 


0.69
 %
30+ days past due as a % of period-end loan receivables(6)
4.80
%
 
4.25
%
 
4.25
%
 
4.32
%
 
4.26
%
 


0.54
 %
 
4.80
%
 
4.26
%
 


0.54
 %
90+ days past due as a % of period-end loan receivables(6)
2.22
%
 
1.90
%
 
2.06
%
 
2.03
%
 
1.89
%
 


0.33
 %
 
2.22
%
 
1.89
%
 


0.33
 %
Net charge-offs
$
950

 
$
1,001

 
$
974

 
$
847

 
$
765

 
$
185

24.2
 %
 
$
2,925

 
$
2,292

 
$
633

27.6
 %
Loan receivables delinquent over 30 days(6)
$
3,694

 
$
3,208

 
$
3,120

 
$
3,295

 
$
3,008

 
$
686

22.8
 %
 
$
3,694

 
$
3,008

 
$
686

22.8
 %
Loan receivables delinquent over 90 days(6)
$
1,707

 
$
1,435

 
$
1,508

 
$
1,546

 
$
1,334

 
$
373

28.0
 %
 
$
1,707

 
$
1,334

 
$
373

28.0
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses (period-end)
$
5,361

 
$
5,001

 
$
4,676

 
$
4,344

 
$
4,115

 
$
1,246

30.3
 %
 
$
5,361

 
$
4,115

 
$
1,246

30.3
 %
Allowance coverage ratio(7)
6.97
%
 
6.63
%
 
6.37
%
 
5.69
%
 
5.82
%
 


1.15
 %
 
6.97
%
 
5.82
%
 


1.15
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BUSINESS METRICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase volume(8)
$
32,893

 
$
33,476

 
$
28,880

 
$
35,369

 
$
31,615

 
$
1,278

4.0
 %
 
$
95,249

 
$
90,099

 
$
5,150

5.7
 %
Period-end loan receivables
$
76,928

 
$
75,458

 
$
73,350

 
$
76,337

 
$
70,644

 
$
6,284

8.9
 %
 
$
76,928

 
$
70,644

 
$
6,284

8.9
 %
Credit cards
$
73,946

 
$
72,492

 
$
70,587

 
$
73,580

 
$
67,858

 
$
6,088

9.0
 %
 
$
73,946

 
$
67,858

 
$
6,088

9.0
 %
Consumer installment loans
$
1,561

 
$
1,514

 
$
1,411

 
$
1,384

 
$
1,361

 
$
200

14.7
 %
 
$
1,561

 
$
1,361

 
$
200

14.7
 %
Commercial credit products
$
1,384

 
$
1,386

 
$
1,311

 
$
1,333

 
$
1,385

 
$
(1
)
(0.1
)%
 
$
1,384

 
$
1,385

 
$
(1
)
(0.1
)%
Other
$
37

 
$
66

 
$
41

 
$
40

 
$
40

 
$
(3
)
(7.5
)%
 
$
37

 
$
40

 
$
(3
)
(7.5
)%
Average loan receivables, including held for sale
$
76,165

 
$
74,090

 
$
74,132

 
$
72,476

 
$
69,316

 
$
6,849

9.9
 %
 
$
74,803

 
$
67,364

 
$
7,439

11.0
 %
Period-end active accounts (in thousands)(9)
69,008

 
69,277

 
67,905

 
71,890

 
66,781

 
2,227

3.3
 %
 
69,008

 
66,781

 
2,227

3.3
 %
Average active accounts (in thousands)(9)
69,331

 
68,635

 
69,629

 
68,701

 
66,639

 
2,692

4.0
 %
 
69,319

 
66,204

 
3,115

4.7
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIQUIDITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liquid assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and equivalents
$
13,915

 
$
12,020

 
$
11,392

 
$
9,321

 
$
13,588

 
$
327

2.4
 %
 
$
13,915

 
$
13,588

 
$
327

2.4
 %
Total liquid assets
$
16,391

 
$
15,274

 
$
16,158

 
$
13,612

 
$
16,362

 
$
29

0.2
 %
 
$
16,391

 
$
16,362

 
$
29

0.2
 %
Undrawn credit facilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Undrawn credit facilities
$
5,650

 
$
6,650

 
$
5,600

 
$
6,700

 
$
7,150

 
$
(1,500
)
(21.0
)%
 
$
5,650

 
$
7,150

 
$
(1,500
)
(21.0
)%
Total liquid assets and undrawn credit facilities
$
22,041

 
$
21,924

 
$
21,758

 
$
20,312

 
$
23,512

 
$
(1,471
)
(6.3
)%
 
$
22,041

 
$
23,512

 
$
(1,471
)
(6.3
)%
Liquid assets % of total assets
17.71
%
 
16.76
%
 
18.14
%
 
15.09
%
 
18.77
%
 


(1.06
)%
 
17.71
%
 
18.77
%
 


(1.06
)%
Liquid assets including undrawn credit facilities % of total assets
23.82
%
 
24.06
%
 
24.43
%
 
22.52
%
 
26.98
%
 


(3.16
)%
 
23.82
%
 
26.98
%
 


(3.16
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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
 
 
 
 
Nine Months Ended
 
 
 
 
Sep 30,
2017
 
Jun 30,
2017
 
Mar 31,
2017
 
Dec 31,
2016
 
Sep 30,
2016
 
3Q'17 vs. 3Q'16
 
Sept 30,
2017
 
Sept 30,
2016
 
YTD'17 vs. YTD'16
Interest income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and fees on loans
$
4,182

 
$
3,927

 
$
3,877

 
$
3,919

 
$
3,771

 
$
411

10.9
 %
 
$
11,986

 
$
10,763

 
$
1,223

11.4
 %
Interest on investment securities
51

 
43

 
36

 
28

 
25

 
26

104.0
 %
 
130

 
68

 
62

91.2
 %
Total interest income
4,233

 
3,970

 
3,913

 
3,947

 
3,796

 
437

11.5
 %
 
12,116

 
10,831

 
1,285

11.9
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest on deposits
219

 
202

 
194

 
188

 
188

 
31

16.5
 %
 
615

 
539

 
76

14.1
 %
Interest on borrowings of consolidated securitization entities
65

 
63

 
65

 
64

 
63

 
2

3.2
 %
 
193

 
180

 
13

7.2
 %
Interest on third-party debt
73

 
68

 
67

 
67

 
64

 
9

14.1
 %
 
208

 
210

 
(2
)
(1.0
)%
Total interest expense
357

 
333

 
326

 
319

 
315

 
42

13.3
 %
 
1,016

 
929

 
87

9.4
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income
3,876

 
3,637

 
3,587

 
3,628

 
3,481

 
395

11.3
 %
 
11,100

 
9,902

 
1,198

12.1
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Retailer share arrangements
(805
)
 
(669
)
 
(684
)
 
(811
)
 
(757
)
 
(48
)
6.3
 %
 
(2,158
)
 
(2,091
)
 
(67
)
3.2
 %
Net interest income, after retailer share arrangements
3,071

 
2,968

 
2,903

 
2,817

 
2,724

 
347

12.7
 %
 
8,942

 
7,811

 
1,131

14.5
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for loan losses
1,310

 
1,326

 
1,306

 
1,076

 
986

 
324

32.9
 %
 
3,942

 
2,910

 
1,032

35.5
 %
Net interest income, after retailer share arrangements and provision for loan losses
1,761

 
1,642

 
1,597

 
1,741

 
1,738

 
23

1.3
 %
 
5,000

 
4,901

 
99

2.0
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interchange revenue
164

 
165

 
145

 
167

 
154

 
10

6.5
 %
 
474

 
435

 
39

9.0
 %
Debt cancellation fees
67

 
68

 
68

 
68

 
67

 
—

—
 %
 
203

 
194

 
9

4.6
 %
Loyalty programs
(168
)
 
(206
)
 
(137
)
 
(157
)
 
(145
)
 
(23
)
15.9
 %
 
(511
)
 
(390
)
 
(121
)
31.0
 %
Other
13

 
30

 
17

 
7

 
8

 
5

62.5
 %
 
60

 
20

 
40

NM

Total other income
76

 
57

 
93

 
85

 
84

 
(8
)
(9.5
)%
 
226

 
259

 
(33
)
(12.7
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other expense:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Employee costs
335

 
321

 
325

 
315

 
311

 
24

7.7
 %
 
981

 
892

 
89

10.0
 %
Professional fees
161

 
158

 
151

 
164

 
174

 
(13
)
(7.5
)%
 
470

 
474

 
(4
)
(0.8
)%
Marketing and business development
124

 
124

 
94

 
130

 
92

 
32

34.8
 %
 
342

 
293

 
49

16.7
 %
Information processing
96

 
88

 
90

 
88

 
87

 
9

10.3
 %
 
274

 
250

 
24

9.6
 %
Other
242

 
220

 
248

 
221

 
195

 
47

24.1
 %
 
710

 
589

 
121

20.5
 %
Total other expense
958

 
911

 
908

 
918

 
859

 
99

11.5
 %
 
2,777

 
2,498

 
279

11.2
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings before provision for income taxes
879

 
788

 
782

 
908

 
963

 
(84
)
(8.7
)%
 
2,449

 
2,662

 
(213
)
(8.0
)%
Provision for income taxes
324

 
292

 
283

 
332

 
359

 
(35
)
(9.7
)%
 
899

 
987

 
(88
)
(8.9
)%
Net earnings attributable to common shareholders
$
555

 
$
496

 
$
499

 
$
576

 
$
604

 
$
(49
)
(8.1
)%
 
$
1,550

 
$
1,675

 
$
(125
)
(7.5
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


3


SYNCHRONY FINANCIAL
 
 
 
 
 
 
 
 
 
 
 
 
STATEMENTS OF FINANCIAL POSITION
 
 
 
 
 
 
 
 
 
 
(unaudited, $ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
 
 
 
Sep 30,
2017
 
Jun 30,
2017
 
Mar 31,
2017
 
Dec 31,
2016
 
Sep 30,
2016
 
Sep 30, 2017 vs.
Sep 30, 2016
Assets
 
 
 
 
 
 
 
 
 
 
 
 
Cash and equivalents
$
13,915

 
$
12,020

 
$
11,392

 
$
9,321

 
$
13,588

 
$
327

2.4
 %
Investment securities
3,317

 
3,997

 
5,328

 
5,110

 
3,356

 
(39
)
(1.2
)%
Loan receivables:
 
 
 
 
 
 
 
 
 
 
 
 
Unsecuritized loans held for investment
53,997

 
52,550

 
50,398

 
52,332

 
47,517

 
6,480

13.6
 %
Restricted loans of consolidated securitization entities
22,931

 
22,908

 
22,952

 
24,005

 
23,127

 
(196
)
(0.8
)%
Total loan receivables
76,928

 
75,458

 
73,350

 
76,337

 
70,644

 
6,284

8.9
 %
Less: Allowance for loan losses
(5,361
)
 
(5,001
)
 
(4,676
)
 
(4,344
)
 
(4,115
)
 
(1,246
)
30.3
 %
Loan receivables, net
71,567

 
70,457

 
68,674

 
71,993

 
66,529

 
5,038

7.6
 %
Goodwill
991

 
991

 
992

 
949

 
949

 
42

4.4
 %
Intangible assets, net
772

 
787

 
826

 
712

 
733

 
39

5.3
 %
Other assets
1,986

 
2,888

 
1,838

 
2,122

 
2,004

 
(18
)
(0.9
)%
Total assets
$
92,548

 
$
91,140

 
$
89,050

 
$
90,207

 
$
87,159

 
$
5,389

6.2
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and Equity
 
 
 
 
 
 
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposit accounts
$
54,232

 
$
52,659

 
$
51,359

 
$
51,896

 
$
49,611

 
$
4,621

9.3
 %
Non-interest-bearing deposit accounts
222

 
226

 
246

 
159

 
204

 
18

8.8
 %
Total deposits
54,454

 
52,885

 
51,605

 
52,055

 
49,815

 
4,639

9.3
 %
Borrowings:
 
 
 
 
 
 
 
 
 
 
 
 
Borrowings of consolidated securitization entities
11,891

 
12,204

 
12,433

 
12,388

 
12,411

 
(520
)
(4.2
)%
Bank term loan
—

 
—

 
—

 
—

 
—

 
—

—
 %
Senior unsecured notes
8,008

 
8,505

 
7,761

 
7,759

 
7,756

 
252

3.2
 %
Total borrowings
19,899

 
20,709

 
20,194

 
20,147

 
20,167

 
(268
)
(1.3
)%
Accrued expenses and other liabilities
3,793

 
3,214

 
2,888

 
3,809

 
3,196

 
597

18.7
 %
Total liabilities
78,146

 
76,808

 
74,687

 
76,011

 
73,178

 
4,968

6.8
 %
Equity:
 
 
 
 
 
 
 
 
 
 
 
 
Common stock
1

 
1

 
1

 
1

 
1

 
—

—
 %
Additional paid-in capital
9,429

 
9,415

 
9,405

 
9,393

 
9,381

 
48

0.5
 %
Retained earnings
6,543

 
6,109

 
5,724

 
5,330

 
4,861

 
1,682

34.6
 %
Accumulated other comprehensive income:
(40
)
 
(49
)
 
(55
)
 
(53
)
 
(24
)
 
(16
)
66.7
 %
Treasury Stock
(1,531
)
 
(1,144
)
 
(712
)
 
(475
)
 
(238
)
 
(1,293
)
NM

Total equity
14,402

 
14,332

 
14,363

 
14,196

 
13,981

 
421

3.0
 %
Total liabilities and equity
$
92,548

 
$
91,140

 
$
89,050

 
$
90,207

 
$
87,159

 
$
5,389

6.2
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 

4


SYNCHRONY FINANCIAL
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AVERAGE BALANCES, NET INTEREST INCOME AND NET INTEREST MARGIN
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(unaudited, $ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
Sep 30, 2017
 
Jun 30, 2017
 
Mar 31, 2017
 
Dec 31, 2016
 
Sep 30, 2016
 
 
 
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
$
11,895

 
$
37

 
1.23
%
 
$
10,758

 
$
28

 
1.04
%
 
$
10,552

 
$
21

 
0.81
%
 
$
12,210

 
$
17

 
0.55
%
 
$
12,480

 
$
16

 
0.51
%
Securities available for sale
3,792

 
14

 
1.46
%
 
5,195

 
15

 
1.16
%
 
5,213

 
15

 
1.17
%
 
4,076

 
11

 
1.07
%
 
2,960

 
9

 
1.21
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loan receivables:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit cards, including held for sale
73,172

 
4,111

 
22.29
%
 
71,206

 
3,858

 
21.73
%
 
71,365

 
3,811

 
21.66
%
 
69,660

 
3,851

 
21.99
%
 
66,519

 
3,705

 
22.16
%
Consumer installment loans
1,543

 
35

 
9.00
%
 
1,461

 
34

 
9.33
%
 
1,389

 
32

 
9.34
%
 
1,373

 
31

 
8.98
%
 
1,333

 
31

 
9.25
%
Commercial credit products
1,392

 
36

 
10.26
%
 
1,378

 
34

 
9.90
%
 
1,317

 
34

 
10.47
%
 
1,386

 
36

 
10.33
%
 
1,401

 
35

 
9.94
%
Other
58

 
—

 
—
%
 
45

 
1

 
NM

 
61

 
—

 
—
%
 
57

 
1

 
NM

 
63

 
—

 
—
%
Total loan receivables, including held for sale
76,165

 
4,182

 
21.78
%
 
74,090

 
3,927

 
21.26
%
 
74,132

 
3,877

 
21.21
%
 
72,476

 
3,919

 
21.51
%
 
69,316

 
3,771

 
21.64
%
Total interest-earning assets
91,852

 
4,233

 
18.28
%
 
90,043

 
3,970

 
17.68
%
 
89,897

 
3,913

 
17.65
%
 
88,762

 
3,947

 
17.69
%
 
84,756

 
3,796

 
17.82
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
877

 
 
 
 
 
829

 
 
 
 
 
802

 
 
 
 
 
739

 
 
 
 
 
862

 
 
 
 
Allowance for loan losses
(5,125
)
 
 
 
 
 
(4,781
)
 
 
 
 
 
(4,408
)
 
 
 
 
 
(4,228
)
 
 
 
 
 
(3,933
)
 
 
 
 
Other assets
3,517

 
 
 
 
 
3,303

 
 
 
 
 
3,177

 
 
 
 
 
3,479

 
 
 
 
 
3,189

 
 
 
 
Total non-interest-earning assets
(731
)
 
 
 
 
 
(649
)
 
 
 
 
 
(429
)
 
 
 
 
 
(10
)
 
 
 
 
 
118

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
91,121

 
 
 
 
 
$
89,394

 
 
 
 
 
$
89,468

 
 
 
 
 
$
88,752

 
 
 
 
 
$
84,874

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposit accounts
$
53,294

 
$
219

 
1.63
%
 
$
51,836

 
$
202

 
1.56
%
 
$
51,829

 
$
194

 
1.52
%
 
$
51,006

 
$
188

 
1.47
%
 
$
47,895

 
$
188

 
1.56
%
Borrowings of consolidated securitization entities
11,759

 
65

 
2.19
%
 
12,213

 
63

 
2.07
%
 
12,321

 
65

 
2.14
%
 
12,389

 
64

 
2.06
%
 
12,254

 
63

 
2.05
%
Bank term loan
—

 
—

 
—
%
 
—

 
—

 
—
%
 
—

 
—

 
—
%
 
—

 
—

 
—
%
 
—

 
—

 
—
%
Senior unsecured notes
8,251

 
73

 
3.51
%
 
7,933

 
68

 
3.44
%
 
7,760

 
67

 
3.50
%
 
7,757

 
67

 
3.44
%
 
7,448

 
64

 
3.42
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total interest-bearing liabilities
73,304

 
357

 
1.93
%
 
71,982

 
333

 
1.86
%
 
71,910

 
326

 
1.84
%
 
71,152

 
319

 
1.78
%
 
67,597

 
315

 
1.85
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest-bearing liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest-bearing deposit accounts
232

 
 
 
 
 
218

 
 
 
 
 
240

 
 
 
 
 
176

 
 
 
 
 
204

 
 
 
 
Other liabilities
3,154

 
 
 
 
 
2,752

 
 
 
 
 
2,995

 
 
 
 
 
3,321

 
 
 
 
 
3,175

 
 
 
 
Total non-interest-bearing liabilities
3,386

 
 
 
 
 
2,970

 
 
 
 
 
3,235

 
 
 
 
 
3,497

 
 
 
 
 
3,379

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities
76,690

 
 
 
 
 
74,952

 
 
 
 
 
75,145

 
 
 
 
 
74,649

 
 
 
 
 
70,976

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total equity
14,431

 
 
 
 
 
14,442

 
 
 
 
 
14,323

 
 
 
 
 
14,103

 
 
 
 
 
13,898

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities and equity
$
91,121

 
 
 
 
 
$
89,394

 
 
 
 
 
$
89,468

 
 
 
 
 
$
88,752

 
 
 
 
 
$
84,874

 
 
 
 
Net interest income
 
 
$
3,876

 
 
 
 
 
$
3,637

 
 
 
 
 
$
3,587

 
 
 
 
 
$
3,628

 
 
 
 
 
$
3,481

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate spread(1)
 
 
 
 
16.35
%
 
 
 
 
 
15.82
%
 
 
 
 
 
15.81
%
 
 
 
 
 
15.91
%
 
 
 
 
 
15.97
%
Net interest margin(2)
 
 
 
 
16.74
%
 
 
 
 
 
16.20
%
 
 
 
 
 
16.18
%
 
 
 
 
 
16.26
%
 
 
 
 
 
16.34
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Interest rate spread represents the difference between the yield on total interest-earning assets and the rate on total interest-bearing liabilities.
(2) Net interest margin represents net interest income divided by average interest-earning assets.

5


SYNCHRONY FINANCIAL
 
 
 
 
 
 
 
 
 
AVERAGE BALANCES, NET INTEREST INCOME AND NET INTEREST MARGIN
 
 
 
 
 
 
(unaudited, $ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended
Sept 30, 2017
 
Nine Months Ended
Sept 30, 2016
 
 
 
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
$
11,073

 
$
86

 
1.04
%
 
$
12,132

 
$
46

 
0.51
%
Securities available for sale
4,732

 
44

 
1.24
%
 
2,932

 
22

 
1.00
%
 
 
 
 
 
 
 
 
 
 
 
 
Loan receivables:
 
 
 
 
 
 
 
 
 
 
 
Credit cards, including held for sale
71,920

 
11,780

 
21.90
%
 
64,701

 
10,573

 
21.83
%
Consumer installment loans
1,465

 
101

 
9.22
%
 
1,240

 
86

 
9.26
%
Commercial credit products
1,363

 
104

 
10.20
%
 
1,367

 
103

 
10.06
%
Other
55

 
1

 
2.43
%
 
56

 
1

 
2.39
%
Total loan receivables, including held for sale
74,803

 
11,986

 
21.42
%
 
67,364

 
10,763

 
21.34
%
Total interest-earning assets
90,608

 
12,116

 
17.88
%
 
82,428

 
10,831

 
17.55
%
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
836

 
 
 
 
 
1,041

 
 
 
 
Allowance for loan losses
(4,774
)
 
 
 
 
 
(3,752
)
 
 
 
 
Other assets
3,334

 
 
 
 
 
3,222

 
 
 
 
Total non-interest-earning assets
(604
)
 
 
 
 
 
511

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
90,004

 
 
 
 
 
$
82,939

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposit accounts
$
52,325

 
$
615

 
1.57
%
 
$
45,915

 
$
539

 
1.57
%
Borrowings of consolidated securitization entities
12,096

 
193

 
2.13
%
 
12,441

 
180

 
1.93
%
Bank term loan(1)
—

 
—

 
—
%
 
742

 
31

 
5.58
%
Senior unsecured notes
7,983

 
208

 
3.48
%
 
6,957

 
179

 
3.44
%
Total interest-bearing liabilities
72,404

 
1,016

 
1.88
%
 
66,055

 
929

 
1.88
%
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest-bearing liabilities
 
 
 
 
 
 
 
 
 
 
 
Non-interest-bearing deposit accounts
230

 
 
 
 
 
215

 
 
 
 
Other liabilities
2,971

 
 
 
 
 
3,211

 
 
 
 
Total non-interest-bearing liabilities
3,201

 
 
 
 
 
3,426

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities
75,605

 
 
 
 
 
69,481

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
 
 
 
 
Total equity
14,399

 
 
 
 
 
13,458

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities and equity
$
90,004

 
 
 
 
 
$
82,939

 
 
 
 
Net interest income
 
 
$
11,100

 
 
 
 
 
$
9,902

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate spread(2)
 
 
 
 
16.00
%
 
 
 
 
 
15.67
%
Net interest margin(3)
 
 
 
 
16.38
%
 
 
 
 
 
16.05
%
 
 
 
 
 
 
 
 
 
 
 
 
(1) The effective interest rate for the Bank term loan for the 9 months ended September 30, 2016 was 2.48%. 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
 
 
 
 
Sep 30,
2017
 
Jun 30,
2017
 
Mar 31,
2017
 
Dec 31,
2016
 
Sep 30,
2016
 
Sep 30, 2017 vs.
Sep 30, 2016
BALANCE SHEET STATISTICS
 
 
 
 
 
 
 
 
 
 
 
 
Total common equity
$
14,402

 
$
14,332

 
$
14,363

 
$
14,196

 
$
13,981

 
$
421

3.0
 %
Total common equity as a % of total assets
15.56
%
 
15.73
%
 
16.13
%
 
15.74
%
 
16.04
%
 

(0.48
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Tangible assets
$
90,785

 
$
89,362

 
$
87,232

 
$
88,546

 
$
85,477

 
$
5,308

6.2
 %
Tangible common equity(1)
$
12,639

 
$
12,554

 
$
12,545

 
$
12,535

 
$
12,299

 
$
340

2.8
 %
Tangible common equity as a % of tangible assets(1)
13.92
%
 
14.05
%
 
14.38
%
 
14.16
%
 
14.39
%
 

(0.47
)%
Tangible common equity per share(1)
$
16.15

 
$
15.79

 
$
15.47

 
$
15.34

 
$
14.90

 
$
1.25

8.4
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
REGULATORY CAPITAL RATIOS(2)
 
 
 
 
 
 
 
 
 
 
 
 

Basel III Transition
 
 
 
Total risk-based capital ratio(3)
18.7
%
 
18.7
%
 
19.3
%
 
18.5
%
 
19.5
%
 
 
 
Tier 1 risk-based capital ratio(4)
17.3
%
 
17.4
%
 
18.0
%
 
17.2
%
 
18.2
%
 
 
 
Tier 1 leverage ratio(5)
14.6
%
 
14.8
%
 
14.8
%
 
15.0
%
 
15.4
%
 
 
 
Common equity Tier 1 capital ratio(6)
17.3
%
 
17.4
%
 
18.0
%
 
17.2
%
 
18.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basel III Fully Phased-in
 
 
 
Common equity Tier 1 capital ratio(6)
17.2
%
 
17.2
%
 
17.7
%
 
17.0
%
 
17.9
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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 September 30, 2017 are preliminary and therefore subject to change.
(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 leverage ratio is the ratio of Tier 1 capital divided by total average assets, after certain adjustments. Tier 1 leverage ratios are based upon the use of daily averages for all periods presented.
(6) 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.

 
 
 
 
 
 
 
 
 
 
 
 
 

7


SYNCHRONY FINANCIAL
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PLATFORM RESULTS
 
 
 
 
 
 
 
 
 
 
 
 
(unaudited, $ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
 
 
 
Nine Months Ended
 
 
 
 
Sep 30,
2017
 
Jun 30,
2017
 
Mar 31,
2017
 
Dec 31,
2016
 
Sep 30,
2016
 
3Q'17 vs. 3Q'16
 
Sept 30,
2017
 
Sept 30,
2016
 
YTD'17 vs. YTD'16
RETAIL CARD
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase volume(1)(2)
$
26,347

 
$
27,101

 
$
22,952

 
$
28,996

 
$
25,285

 
$
1,062

4.2
 %
 
$
76,400

 
$
72,246

 
$
4,154

5.7
 %
Period-end loan receivables
$
52,119

 
$
51,437

 
$
49,905

 
$
52,701

 
$
48,010

 
$
4,109

8.6
 %
 
$
52,119

 
$
48,010

 
$
4,109

8.6
 %
Average loan receivables, including held for sale
$
51,817

 
$
50,533

 
$
50,644

 
$
49,476

 
$
47,274

 
$
4,543

9.6
 %
 
$
51,002

 
$
46,119

 
$
4,883

10.6
 %
Average active accounts (in thousands)(2)(3)
54,471

 
54,058

 
55,049

 
54,489

 
52,959

 
1,512

2.9
 %
 
54,639

 
52,834

 
1,805

3.4
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and fees on loans(2)
$
3,102

 
$
2,900

 
$
2,888

 
$
2,909

 
$
2,790

 
$
312

11.2
 %
 
$
8,890

 
$
7,989

 
$
901

11.3
 %
Other income(2)
$
61

 
$
25

 
$
77

 
$
70

 
$
70

 
$
(9
)
(12.9
)%
 
$
163

 
$
218

 
$
(55
)
(25.2
)%
Retailer share arrangements(2)
$
(795
)
 
$
(657
)
 
$
(681
)
 
$
(801
)
 
$
(752
)
 
$
(43
)
5.7
 %
 
$
(2,133
)
 
$
(2,069
)
 
$
(64
)
3.1
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PAYMENT SOLUTIONS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase volume(1)
$
4,178

 
$
3,930

 
$
3,686

 
$
4,194

 
$
4,152

 
$
26

0.6
 %
 
$
11,794

 
$
11,447

 
$
347

3.0
 %
Period-end loan receivables
$
16,153

 
$
15,595

 
$
15,320

 
$
15,567

 
$
14,798

 
$
1,355

9.2
 %
 
$
16,153

 
$
14,798

 
$
1,355

9.2
 %
Average loan receivables
$
15,848

 
$
15,338

 
$
15,424

 
$
15,076

 
$
14,367

 
$
1,481

10.3
 %
 
$
15,538

 
$
13,786

 
$
1,752

12.7
 %
Average active accounts (in thousands)(3)
9,183

 
9,031

 
9,090

 
8,844

 
8,461

 
722

8.5
 %
 
9,108

 
8,261

 
847

10.3
 %
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and fees on loans
$
559

 
$
533

 
$
515

 
$
523

 
$
505

 
$
54

10.7
 %
 
$
1,607

 
$
1,429

 
$
178

12.5
 %
Other income
$
2

 
$
6

 
$
4

 
$
3

 
$
3

 
$
(1
)
(33.3
)%
 
$
12

 
$
10

 
$
2

20.0
 %
Retailer share arrangements
$
(9
)
 
$
(9
)
 
$
(1
)
 
$
(9
)
 
$
(3
)
 
$
(6
)
NM

 
$
(19
)
 
$
(17
)
 
$
(2
)
11.8
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CARECREDIT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase volume(1)
$
2,368

 
$
2,445

 
$
2,242

 
$
2,179

 
$
2,178

 
$
190

8.7
 %
 
$
7,055

 
$
6,406

 
$
649

10.1
 %
Period-end loan receivables
$
8,656

 
$
8,426

 
$
8,125

 
$
8,069

 
$
7,836

 
$
820

10.5
 %
 
$
8,656

 
$
7,836

 
$
820

10.5
 %
Average loan receivables
$
8,500

 
$
8,219

 
$
8,064

 
$
7,924

 
$
7,675

 
$
825

10.7
 %
 
$
8,263

 
$
7,459

 
$
804

10.8
 %
Average active accounts (in thousands)(3)
5,677

 
5,546

 
5,490

 
5,368

 
5,219

 
458

8.8
 %
 
5,572

 
5,109

 
463

9.1
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and fees on loans
$
521

 
$
494

 
$
474

 
$
487

 
$
476

 
$
45

9.5
 %
 
$
1,489

 
$
1,345

 
$
144

10.7
 %
Other income
$
13

 
$
26

 
$
12

 
$
12

 
$
11

 
$
2

18.2
 %
 
$
51

 
$
31

 
$
20

64.5
 %
Retailer share arrangements
$
(1
)
 
$
(3
)
 
$
(2
)
 
$
(1
)
 
$
(2
)
 
$
1

(50.0
)%
 
$
(6
)
 
$
(5
)
 
$
(1
)
20.0
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL SYF
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase volume(1)(2)
$
32,893

 
$
33,476

 
$
28,880

 
$
35,369

 
$
31,615

 
$
1,278

4.0
 %
 
$
95,249

 
$
90,099

 
$
5,150

5.7
 %
Period-end loan receivables
$
76,928

 
$
75,458

 
$
73,350

 
$
76,337

 
$
70,644

 
$
6,284

8.9
 %
 
$
76,928

 
$
70,644

 
$
6,284

8.9
 %
Average loan receivables, including held for sale
$
76,165

 
$
74,090

 
$
74,132

 
$
72,476

 
$
69,316

 
$
6,849

9.9
 %
 
$
74,803

 
$
67,364

 
$
7,439

11.0
 %
Average active accounts (in thousands)(2)(3)
69,331

 
68,635

 
69,629

 
68,701

 
66,639

 
2,692

4.0
 %
 
69,319

 
66,204

 
3,115

4.7
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and fees on loans(2)
$
4,182

 
$
3,927

 
$
3,877

 
$
3,919

 
$
3,771

 
$
411

10.9
 %
 
$
11,986

 
$
10,763

 
$
1,223

11.4
 %
Other income(2)
$
76

 
$
57

 
$
93

 
$
85

 
$
84

 
$
(8
)
(9.5
)%
 
$
226

 
$
259

 
$
(33
)
(12.7
)%
Retailer share arrangements(2)
$
(805
)
 
$
(669
)
 
$
(684
)
 
$
(811
)
 
$
(757
)
 
$
(48
)
6.3
 %
 
$
(2,158
)
 
$
(2,091
)
 
$
(67
)
3.2
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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
 
Sep 30,
2017
 
Jun 30,
2017
 
Mar 31,
2017
 
Dec 31,
2016
 
Sep 30,
2016
COMMON EQUITY MEASURES
 
 
 
 
 
 
 
 
 
GAAP Total common equity
$
14,402

 
$
14,332

 
$
14,363

 
$
14,196

 
$
13,981

Less: Goodwill
(991
)
 
(991
)
 
(992
)
 
(949
)
 
(949
)
Less: Intangible assets, net
(772
)
 
(787
)
 
(826
)
 
(712
)
 
(733
)
Tangible common equity
$
12,639

 
$
12,554

 
$
12,545

 
$
12,535

 
$
12,299

 
 
 
 
 
 
 
 
 
 
Adjustments for certain deferred tax liabilities and certain items in accumulated comprehensive income (loss)
344

 
337

 
340

 
337

 
299

Basel III - Common equity Tier 1 (fully phased-in)
$
12,983

 
$
12,891

 
$
12,885

 
$
12,872

 
$
12,598

Adjustment related to capital components during transition
142

 
146

 
154

 
263

 
273

Basel III - Common equity Tier 1 (transition)
$
13,125

 
$
13,037

 
$
13,039

 
$
13,135

 
$
12,871

 
 
 
 
 
 
 
 
 
 
RISK-BASED CAPITAL
 
 
 
 
 
 
 
 
 
Common equity Tier 1
$
13,125

 
$
13,037

 
$
13,039

 
$
13,135

 
$
12,871

Add: Allowance for loan losses includible in risk-based capital
1,001

 
985

 
954

 
994

 
923

Risk-based capital
$
14,126

 
$
14,022

 
$
13,993

 
$
14,129

 
$
13,794

 
 
 
 
 
 
 
 
 
 
ASSET MEASURES
 
 
 
 
 
 
 
 
 
Total average assets(2)
$
91,121

 
$
89,394

 
$
89,468

 
$
88,752

 
$
84,874

Adjustments for:
 
 
 
 
 
 
 
 
 
Disallowed goodwill and other disallowed intangible assets
(net of related deferred tax liabilities) and other
(1,304
)
 
(1,325
)
 
(1,358
)
 
(1,059
)
 
(1,117
)
Total assets for leverage purposes
$
89,817

 
$
88,069

 
$
88,110

 
$
87,693

 
$
83,757

 
 
 
 
 
 
 
 
 
 
Risk-weighted assets - Basel III (fully phased-in)(3)
$
75,614

 
$
74,748

 
$
72,596

 
$
75,941

 
$
70,448

Risk-weighted assets - Basel III (transition)(3)
$
75,729

 
$
74,792

 
$
72,627

 
$
76,179

 
$
70,660

 
 
 
 
 
 
 
 
 
 
TANGIBLE COMMON EQUITY PER SHARE
 
 
 
 
 
 
 
 
 
GAAP book value per share
$
18.40

 
$
18.02

 
$
17.71

 
$
17.37

 
$
16.94

Less: Goodwill
(1.27
)
 
(1.25
)
 
(1.22
)
 
(1.16
)
 
(1.14
)
Less: Intangible assets, net
(0.98
)
 
(0.98
)
 
(1.02
)
 
(0.87
)
 
(0.90
)
Tangible common equity per share
$
16.15

 
$
15.79

 
$
15.47

 
$
15.34

 
$
14.90

 
 
 
 
 
 
 
 
 
 
(1) Regulatory measures at September 30, 2017 are presented on an estimated basis.
(2) Total average assets are presented based upon the use of daily averages.
(3) 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