Exhibit 99.2


SYNCHRONY FINANCIAL
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL SUMMARY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(unaudited, in millions, except per share statistics)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
 
 
Twelve Months Ended
 
 
 
 
Dec 31,
2017
 
Sep 30,
2017
 
Jun 30,
2017
 
Mar 31,
2017
 
Dec 31,
2016
 
4Q'17 vs. 4Q'16
 
Dec 31,
2017
 
Dec 31,
2016
 
YTD'17 vs. YTD'16
EARNINGS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income
$
3,916

 
$
3,876

 
$
3,637

 
$
3,587

 
$
3,628

 
$
288

7.9
 %
 
$
15,016

 
$
13,530

 
$
1,486

11.0
 %
Retailer share arrangements
(779
)
 
(805
)
 
(669
)
 
(684
)
 
(811
)
 
32

(3.9
)%
 
(2,937
)
 
(2,902
)
 
(35
)
1.2
 %
Net interest income, after retailer share arrangements
3,137

 
3,071

 
2,968

 
2,903

 
2,817

 
320

11.4
 %
 
12,079

 
10,628

 
1,451

13.7
 %
Provision for loan losses
1,354

 
1,310

 
1,326

 
1,306

 
1,076

 
278

25.8
 %
 
5,296

 
3,986

 
1,310

32.9
 %
Net interest income, after retailer share arrangements and provision for loan losses
1,783

 
1,761

 
1,642

 
1,597

 
1,741

 
42

2.4
 %
 
6,783

 
6,642

 
141

2.1
 %
Other income
62

 
76

 
57

 
93

 
85

 
(23
)
(27.1
)%
 
288

 
344

 
(56
)
(16.3
)%
Other expense
970

 
958

 
911

 
908

 
918

 
52

5.7
 %
 
3,747

 
3,416

 
331

9.7
 %
Earnings before provision for income taxes
875

 
879

 
788

 
782

 
908

 
(33
)
(3.6
)%
 
3,324

 
3,570

 
(246
)
(6.9
)%
Provision for income taxes
490

 
324

 
292

 
283

 
332

 
158

47.6
 %
 
1,389

 
1,319

 
70

5.3
 %
Net earnings
$
385

 
$
555

 
$
496

 
$
499

 
$
576

 
$
(191
)
(33.2
)%
 
$
1,935

 
$
2,251

 
$
(316
)
(14.0
)%
Net earnings attributable to common stockholders
$
385

 
$
555

 
$
496

 
$
499

 
$
576

 
$
(191
)
(33.2
)%
 
$
1,935


$
2,251


$
(316
)
(14.0
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted net earnings(1)
$
545

 
$
555

 
$
496

 
$
499

 
$
576

 
$
(31
)
(5.4
)%
 
$
2,095

 
$
2,251

 
$
(156
)
(6.9
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
COMMON SHARE STATISTICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic EPS
$
0.49

 
$
0.70

 
$
0.62

 
$
0.61

 
$
0.70

 
$
(0.21
)
(30.0
)%
 
$
2.43

 
$
2.71

 
$
(0.28
)
(10.3
)%
Diluted EPS
$
0.49

 
$
0.70

 
$
0.61

 
$
0.61

 
$
0.70

 
$
(0.21
)
(30.0
)%
 
$
2.42

 
$
2.71

 
$
(0.29
)
(10.7
)%
Adjusted diluted EPS(1)
$
0.70

 
$
0.70

 
$
0.61

 
$
0.61

 
$
0.70

 
$

 %
 
$
2.62

 
$
2.71

 
$
(0.09
)
(3.3
)%
Dividend declared per share
$
0.15

 
$
0.15

 
$
0.13

 
$
0.13

 
$
0.13

 
$
0.02

15.4
 %
 
$
0.56

 
$
0.26

 
$
0.30

115.4
 %
Common stock price
$
38.61

 
$
31.05

 
$
29.82

 
$
34.30

 
$
36.27

 
$
2.34

6.5
 %
 
$
38.61

 
$
36.27

 
$
2.34

6.5
 %
Book value per share
$
18.47

 
$
18.40

 
$
18.02

 
$
17.71

 
$
17.37

 
$
1.10

6.3
 %
 
$
18.47

 
$
17.37

 
$
1.10

6.3
 %
Tangible common equity per share(2)
$
16.22

 
$
16.15

 
$
15.79

 
$
15.47

 
$
15.34

 
$
0.88

5.7
 %
 
$
16.22

 
$
15.34

 
$
0.88

5.7
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning common shares outstanding
782.6

 
795.3

 
810.8

 
817.4

 
825.5

 
(42.9
)
(5.2
)%
 
817.4

 
833.8

 
(16.4
)
(2.0
)%
Issuance of common shares

 

 

 

 

 

 %
 

 

 

 %
Stock-based compensation
0.1

 
0.1

 
0.2

 

 

 
0.1

NM

 
0.4

 
0.2

 
0.2

100.0
 %
Shares repurchased
(12.2
)
 
(12.8
)
 
(15.7
)
 
(6.6
)
 
(8.1
)
 
(4.1
)
50.6
 %
 
(47.3
)
 
(16.6
)
 
(30.7
)
184.9
 %
Ending common shares outstanding
770.5

 
782.6

 
795.3

 
810.8

 
817.4

 
(46.9
)
(5.7
)%
 
770.5

 
817.4

 
(46.9
)
(5.7
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding
778.7

 
787.3

 
804.0

 
813.1

 
820.5

 
(41.8
)
(5.1
)%
 
795.6

 
829.2

 
(33.6
)
(4.1
)%
Weighted average common shares outstanding (fully diluted)
784.0

 
790.9

 
807.4

 
817.1

 
823.8

 
(39.8
)
(4.8
)%
 
799.7

 
831.5

 
(31.8
)
(3.8
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Adjusted net earnings and Adjusted diluted EPS are non-GAAP measures. These measures represent the corresponding GAAP measure, adjusted to exclude the effects to Provision for income taxes in the quarter ended December 31, 2017, resulting from the Tax Cuts and Jobs Act of 2017 (the “Tax Act”). The effects primarily relate to additional tax expense arising from the remeasurement of our net deferred tax asset to reflect the reduction in the U.S. corporate tax rate from 35% to 21%. For a corresponding reconciliation to a GAAP financial measure, see Reconciliation of Non-GAAP Measures and Calculations of Regulatory Measures.
(2) 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,
2017
 
Sep 30,
2017
 
Jun 30,
2017
 
Mar 31,
2017
 
Dec 31,
2016
 
4Q'17 vs. 4Q'16
 
Dec 31,
2017
 
Dec 31,
2016
 
YTD'17 vs. YTD'16
PERFORMANCE METRICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on assets(1)
1.6
%
 
2.4
%
 
2.2
%
 
2.3
%
 
2.6
%
 


(1.0
)%
 
2.1
%
 
2.7
%
 


(0.6
)%
Return on equity(2)
10.5
%
 
15.3
%
 
13.8
%
 
14.1
%
 
16.2
%
 


(5.7
)%
 
13.4
%
 
16.5
%
 


(3.1
)%
Return on tangible common equity(3)
12.0
%
 
17.4
%
 
15.7
%
 
16.1
%
 
18.4
%
 


(6.4
)%
 
15.3
%
 
18.8
%
 


(3.5
)%
Adjusted return on assets(4)
2.3
%
 
2.4
%
 
2.2
%
 
2.3
%
 
2.6
%
 
 
(0.3
)%
 
2.3
%
 
2.7
%
 
 
(0.4
)%
Adjusted return on equity(4)
14.9
%
 
15.3
%
 
13.8
%
 
14.1
%
 
16.2
%
 
 
(1.3
)%
 
14.5
%
 
16.5
%
 
 
(2.0
)%
Adjusted return on tangible common equity(5)
17.0
%
 
17.4
%
 
15.7
%
 
16.1
%
 
18.4
%
 
 
(1.4
)%
 
16.6
%
 
18.8
%
 
 
(2.2
)%
Net interest margin(6)
16.24
%
 
16.74
%
 
16.20
%
 
16.18
%
 
16.26
%
 


(0.02
)%
 
16.35
%
 
16.10
%
 


0.25
 %
Efficiency ratio(7)
30.3
%
 
30.4
%
 
30.1
%
 
30.3
%
 
31.6
%
 


(1.3
)%
 
30.3
%
 
31.1
%
 


(0.8
)%
Other expense as a % of average loan receivables, including held for sale
4.91
%
 
4.99
%
 
4.93
%
 
4.97
%
 
5.04
%
 


(0.13
)%
 
4.95
%
 
4.98
%
 


(0.03
)%
Effective income tax rate
56.0
%
 
36.9
%
 
37.1
%
 
36.2
%
 
36.6
%
 


19.4
 %
 
41.8
%
 
36.9
%
 


4.9
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CREDIT QUALITY METRICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net charge-offs as a % of average loan receivables, including held for sale
5.78
%
 
4.95
%
 
5.42
%
 
5.33
%
 
4.65
%
 


1.13
 %
 
5.37
%
 
4.57
%
 


0.80
 %
30+ days past due as a % of period-end loan receivables(8)
4.67
%
 
4.80
%
 
4.25
%
 
4.25
%
 
4.32
%
 


0.35
 %
 
4.67
%
 
4.32
%
 


0.35
 %
90+ days past due as a % of period-end loan receivables(8)
2.28
%
 
2.22
%
 
1.90
%
 
2.06
%
 
2.03
%
 


0.25
 %
 
2.28
%
 
2.03
%
 


0.25
 %
Net charge-offs
$
1,141

 
$
950

 
$
1,001

 
$
974

 
$
847

 
$
294

34.7
 %
 
$
4,066

 
$
3,139

 
$
927

29.5
 %
Loan receivables delinquent over 30 days(8)
$
3,831

 
$
3,694

 
$
3,208

 
$
3,120

 
$
3,295

 
$
536

16.3
 %
 
$
3,831

 
$
3,295

 
$
536

16.3
 %
Loan receivables delinquent over 90 days(8)
$
1,869

 
$
1,707

 
$
1,435

 
$
1,508

 
$
1,546

 
$
323

20.9
 %
 
$
1,869

 
$
1,546

 
$
323

20.9
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses (period-end)
$
5,574

 
$
5,361

 
$
5,001

 
$
4,676

 
$
4,344

 
$
1,230

28.3
 %
 
$
5,574

 
$
4,344

 
$
1,230

28.3
 %
Allowance coverage ratio(9)
6.80
%
 
6.97
%
 
6.63
%
 
6.37
%
 
5.69
%
 


1.11
 %
 
6.80
%
 
5.69
%
 


1.11
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BUSINESS METRICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase volume(10)
$
36,565

 
$
32,893

 
$
33,476

 
$
28,880

 
$
35,369

 
$
1,196

3.4
 %
 
$
131,814

 
$
125,468

 
$
6,346

5.1
 %
Period-end loan receivables
$
81,947

 
$
76,928

 
$
75,458

 
$
73,350

 
$
76,337

 
$
5,610

7.3
 %
 
$
81,947

 
$
76,337

 
$
5,610

7.3
 %
Credit cards
$
79,026

 
$
73,946

 
$
72,492

 
$
70,587

 
$
73,580

 
$
5,446

7.4
 %
 
$
79,026

 
$
73,580

 
$
5,446

7.4
 %
Consumer installment loans
$
1,578

 
$
1,561

 
$
1,514

 
$
1,411

 
$
1,384

 
$
194

14.0
 %
 
$
1,578

 
$
1,384

 
$
194

14.0
 %
Commercial credit products
$
1,303

 
$
1,384

 
$
1,386

 
$
1,311

 
$
1,333

 
$
(30
)
(2.3
)%
 
$
1,303

 
$
1,333

 
$
(30
)
(2.3
)%
Other
$
40

 
$
37

 
$
66

 
$
41

 
$
40

 
$

 %
 
$
40

 
$
40

 
$

 %
Average loan receivables, including held for sale
$
78,369

 
$
76,165

 
$
74,090

 
$
74,132

 
$
72,476

 
$
5,893

8.1
 %
 
$
75,702

 
$
68,649

 
$
7,053

10.3
 %
Period-end active accounts (in thousands)(11)
74,541

 
69,008

 
69,277

 
67,905

 
71,890

 
2,651

3.7
 %
 
74,541

 
71,890

 
2,651

3.7
 %
Average active accounts (in thousands)(11)
71,348

 
69,331

 
68,635

 
69,629

 
68,701

 
2,647

3.9
 %
 
69,968

 
66,928

 
3,040

4.5
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIQUIDITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liquid assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and equivalents
$
11,602

 
$
13,915

 
$
12,020

 
$
11,392

 
$
9,321

 
$
2,281

24.5
 %
 
$
11,602

 
$
9,321

 
$
2,281

24.5
 %
Total liquid assets
$
15,087

 
$
16,391

 
$
15,274

 
$
16,158

 
$
13,612

 
$
1,475

10.8
 %
 
$
15,087

 
$
13,612

 
$
1,475

10.8
 %
Undrawn credit facilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Undrawn credit facilities
$
6,000

 
$
5,650

 
$
6,650

 
$
5,600

 
$
6,700

 
$
(700
)
(10.4
)%
 
$
6,000

 
$
6,700

 
$
(700
)
(10.4
)%
Total liquid assets and undrawn credit facilities
$
21,087

 
$
22,041

 
$
21,924

 
$
21,758

 
$
20,312

 
$
775

3.8
 %
 
$
21,087

 
$
20,312

 
$
775

3.8
 %
Liquid assets % of total assets
15.75
%
 
17.71
%
 
16.76
%
 
18.14
%
 
15.09
%
 


0.66
 %
 
15.75
%
 
15.09
%
 


0.66
 %
Liquid assets including undrawn credit facilities % of total assets
22.01
%
 
23.82
%
 
24.06
%
 
24.43
%
 
22.52
%
 


(0.51
)%
 
22.01
%
 
22.52
%
 


(0.51
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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) Adjusted return on assets represents Adjusted net earnings as a percentage of average total assets. Adjusted return on equity represents Adjusted net earnings as a percentage of average total equity. Adjusted net earnings is a non-GAAP measure. For a corresponding reconciliation of Adjusted net earnings to a GAAP financial measure, see Reconciliation of Non-GAAP Measures and Calculations of Regulatory Measures.
(5) Adjusted return on tangible common equity represents Adjusted net earnings as a percentage of average tangible common equity. Both Adjusted net earnings and tangible common equity are non-GAAP measures. For corresponding reconciliations to a GAAP financial measure, see Reconciliation of Non-GAAP Measures and Calculations of Regulatory Measures.
(6) Net interest margin represents net interest income divided by average interest-earning assets.
(7) Efficiency ratio represents (i) other expense, divided by (ii) net interest income, after retailer share arrangements, plus other income.
(8) Based on customer statement-end balances extrapolated to the respective period-end date.
(9) Allowance coverage ratio represents allowance for loan losses divided by total period-end loan receivables.
(10) 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.
(11) 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,
2017
 
Sep 30,
2017
 
Jun 30,
2017
 
Mar 31,
2017
 
Dec 31,
2016
 
4Q'17 vs. 4Q'16
 
Dec 31,
2017
 
Dec 31,
2016
 
YTD'17 vs. YTD'16
Interest income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and fees on loans
$
4,233

 
$
4,182

 
$
3,927

 
$
3,877

 
$
3,919

 
$
314

8.0
 %
 
$
16,219

 
$
14,682

 
$
1,537

10.5
 %
Interest on investment securities
58

 
51

 
43

 
36

 
28

 
30

107.1
 %
 
188

 
96

 
92

95.8
 %
Total interest income
4,291

 
4,233

 
3,970

 
3,913

 
3,947

 
344

8.7
 %
 
16,407

 
14,778

 
1,629

11.0
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest on deposits
233

 
219

 
202

 
194

 
188

 
45

23.9
 %
 
848

 
727

 
121

16.6
 %
Interest on borrowings of consolidated securitization entities
70

 
65

 
63

 
65

 
64

 
6

9.4
 %
 
263

 
244

 
19

7.8
 %
Interest on third-party debt
72

 
73

 
68

 
67

 
67

 
5

7.5
 %
 
280

 
277

 
3

1.1
 %
Total interest expense
375

 
357

 
333

 
326

 
319

 
56

17.6
 %
 
1,391

 
1,248

 
143

11.5
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income
3,916

 
3,876

 
3,637

 
3,587

 
3,628

 
288

7.9
 %
 
15,016

 
13,530

 
1,486

11.0
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Retailer share arrangements
(779
)
 
(805
)
 
(669
)
 
(684
)
 
(811
)
 
32

(3.9
)%
 
(2,937
)
 
(2,902
)
 
(35
)
1.2
 %
Net interest income, after retailer share arrangements
3,137

 
3,071

 
2,968

 
2,903

 
2,817

 
320

11.4
 %
 
12,079

 
10,628

 
1,451

13.7
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for loan losses
1,354

 
1,310

 
1,326

 
1,306

 
1,076

 
278

25.8
 %
 
5,296

 
3,986

 
1,310

32.9
 %
Net interest income, after retailer share arrangements and provision for loan losses
1,783

 
1,761

 
1,642

 
1,597

 
1,741

 
42

2.4
 %
 
6,783

 
6,642

 
141

2.1
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interchange revenue
179

 
164

 
165

 
145

 
167

 
12

7.2
 %
 
653

 
602

 
51

8.5
 %
Debt cancellation fees
69

 
67

 
68

 
68

 
68

 
1

1.5
 %
 
272

 
262

 
10

3.8
 %
Loyalty programs
(193
)
 
(168
)
 
(206
)
 
(137
)
 
(157
)
 
(36
)
22.9
 %
 
(704
)
 
(547
)
 
(157
)
28.7
 %
Other
7

 
13

 
30

 
17

 
7

 

 %
 
67

 
27

 
40

148.1
 %
Total other income
62

 
76

 
57

 
93

 
85

 
(23
)
(27.1
)%
 
288

 
344

 
(56
)
(16.3
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other expense:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Employee costs
333

 
335

 
321

 
325

 
315

 
18

5.7
 %
 
1,314

 
1,207

 
107

8.9
 %
Professional fees
159

 
161

 
158

 
151

 
164

 
(5
)
(3.0
)%
 
629

 
638

 
(9
)
(1.4
)%
Marketing and business development
156

 
124

 
124

 
94

 
130

 
26

20.0
 %
 
498

 
423

 
75

17.7
 %
Information processing
99

 
96

 
88

 
90

 
88

 
11

12.5
 %
 
373

 
338

 
35

10.4
 %
Other
223

 
242

 
220

 
248

 
221

 
2

0.9
 %
 
933

 
810

 
123

15.2
 %
Total other expense
970

 
958

 
911

 
908

 
918

 
52

5.7
 %
 
3,747

 
3,416

 
331

9.7
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings before provision for income taxes
875

 
879

 
788

 
782

 
908

 
(33
)
(3.6
)%
 
3,324

 
3,570

 
(246
)
(6.9
)%
Provision for income taxes
490

 
324

 
292

 
283

 
332

 
158

47.6
 %
 
1,389

 
1,319

 
70

5.3
 %
Net earnings attributable to common stockholders
$
385

 
$
555

 
$
496

 
$
499

 
$
576

 
$
(191
)
(33.2
)%
 
$
1,935

 
$
2,251

 
$
(316
)
(14.0
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

3



SYNCHRONY FINANCIAL
 
 
 
 
 
 
 
 
 
 
 
 
STATEMENTS OF FINANCIAL POSITION
 
 
 
 
 
 
 
 
 
 
(unaudited, $ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
 
 
 
Dec 31,
2017
 
Sep 30,
2017
 
Jun 30,
2017
 
Mar 31,
2017
 
Dec 31,
2016
 
Dec 31, 2017 vs.
Dec 31, 2016
Assets
 
 
 
 
 
 
 
 
 
 
 
 
Cash and equivalents
$
11,602

 
$
13,915

 
$
12,020

 
$
11,392

 
$
9,321

 
$
2,281

24.5
 %
Investment securities
4,488

 
3,317

 
3,997

 
5,328

 
5,110

 
(622
)
(12.2
)%
Loan receivables:
 
 
 
 
 
 
 
 
 
 
 
 
Unsecuritized loans held for investment
55,526

 
53,997

 
52,550

 
50,398

 
52,332

 
3,194

6.1
 %
Restricted loans of consolidated securitization entities
26,421

 
22,931

 
22,908

 
22,952

 
24,005

 
2,416

10.1
 %
Total loan receivables
81,947

 
76,928

 
75,458

 
73,350

 
76,337

 
5,610

7.3
 %
Less: Allowance for loan losses
(5,574
)
 
(5,361
)
 
(5,001
)
 
(4,676
)
 
(4,344
)
 
(1,230
)
28.3
 %
Loan receivables, net
76,373

 
71,567

 
70,457

 
68,674

 
71,993

 
4,380

6.1
 %
Goodwill
991

 
991

 
991

 
992

 
949

 
42

4.4
 %
Intangible assets, net
749

 
772

 
787

 
826

 
712

 
37

5.2
 %
Other assets
1,605

 
1,986

 
2,888

 
1,838

 
2,122

 
(517
)
(24.4
)%
Total assets
$
95,808

 
$
92,548

 
$
91,140

 
$
89,050

 
$
90,207

 
$
5,601

6.2
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and Equity
 
 
 
 
 
 
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposit accounts
$
56,276

 
$
54,232

 
$
52,659

 
$
51,359

 
$
51,896

 
$
4,380

8.4
 %
Non-interest-bearing deposit accounts
212

 
222

 
226

 
246

 
159

 
53

33.3
 %
Total deposits
56,488

 
54,454

 
52,885

 
51,605

 
52,055

 
4,433

8.5
 %
Borrowings:
 
 
 
 
 
 
 
 
 
 
 
 
Borrowings of consolidated securitization entities
12,497

 
11,891

 
12,204

 
12,433

 
12,388

 
109

0.9
 %
Bank term loan

 

 

 

 

 

 %
Senior unsecured notes
8,302

 
8,008

 
8,505

 
7,761

 
7,759

 
543

7.0
 %
Total borrowings
20,799

 
19,899

 
20,709

 
20,194

 
20,147

 
652

3.2
 %
Accrued expenses and other liabilities
4,287

 
3,793

 
3,214

 
2,888

 
3,809

 
478

12.5
 %
Total liabilities
81,574

 
78,146

 
76,808

 
74,687

 
76,011

 
5,563

7.3
 %
Equity:
 
 
 
 
 
 
 
 
 
 
 
 
Common stock
1

 
1

 
1

 
1

 
1

 

 %
Additional paid-in capital
9,445

 
9,429

 
9,415

 
9,405

 
9,393

 
52

0.6
 %
Retained earnings
6,809

 
6,543

 
6,109

 
5,724

 
5,330

 
1,479

27.7
 %
Accumulated other comprehensive income
(64
)
 
(40
)
 
(49
)
 
(55
)
 
(53
)
 
(11
)
20.8
 %
Treasury Stock
(1,957
)
 
(1,531
)
 
(1,144
)
 
(712
)
 
(475
)
 
(1,482
)
                     NM

Total equity
14,234

 
14,402

 
14,332

 
14,363

 
14,196

 
38

0.3
 %
Total liabilities and equity
$
95,808

 
$
92,548

 
$
91,140

 
$
89,050

 
$
90,207

 
$
5,601

6.2
 %
 
 
 
 
 
 
 
 
 
 
 
 
 


4



SYNCHRONY FINANCIAL
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AVERAGE BALANCES, NET INTEREST INCOME AND NET INTEREST MARGIN
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(unaudited, $ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
Dec 31, 2017
 
Sep 30, 2017
 
Jun 30, 2017
 
Mar 31, 2017
 
Dec 31, 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
$
13,591

 
$
43

 
1.26
%
 
$
11,895

 
$
37

 
1.23
%
 
$
10,758

 
$
28

 
1.04
%
 
$
10,552

 
$
21

 
0.81
%
 
$
12,210

 
$
17

 
0.55
%
Securities available for sale
3,725

 
15

 
1.60
%
 
3,792

 
14

 
1.46
%
 
5,195

 
15

 
1.16
%
 
5,213

 
15

 
1.17
%
 
4,076

 
11

 
1.07
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loan receivables:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit cards, including held for sale
75,389

 
4,161

 
21.90
%
 
73,172

 
4,111

 
22.29
%
 
71,206

 
3,858

 
21.73
%
 
71,365

 
3,811

 
21.66
%
 
69,660

 
3,851

 
21.99
%
Consumer installment loans
1,568

 
36

 
9.11
%
 
1,543

 
35

 
9.00
%
 
1,461

 
34

 
9.33
%
 
1,389

 
32

 
9.34
%
 
1,373

 
31

 
8.98
%
Commercial credit products
1,375

 
35

 
10.10
%
 
1,392

 
36

 
10.26
%
 
1,378

 
34

 
9.90
%
 
1,317

 
34

 
10.47
%
 
1,386

 
36

 
10.33
%
Other
37

 
1

 
NM

 
58

 

 
%
 
45

 
1

 
NM

 
61

 

 
%
 
57

 
1

 
NM

Total loan receivables, including held for sale
78,369

 
4,233

 
21.43
%
 
76,165

 
4,182

 
21.78
%
 
74,090

 
3,927

 
21.26
%
 
74,132

 
3,877

 
21.21
%
 
72,476

 
3,919

 
21.51
%
Total interest-earning assets
95,685

 
4,291

 
17.79
%
 
91,852

 
4,233

 
18.28
%
 
90,043

 
3,970

 
17.68
%
 
89,897

 
3,913

 
17.65
%
 
88,762

 
3,947

 
17.69
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
1,037

 
 
 
 
 
877

 
 
 
 
 
829

 
 
 
 
 
802

 
 
 
 
 
739

 
 
 
 
Allowance for loan losses
(5,443
)
 
 
 
 
 
(5,125
)
 
 
 
 
 
(4,781
)
 
 
 
 
 
(4,408
)
 
 
 
 
 
(4,228
)
 
 
 
 
Other assets
3,219

 
 
 
 
 
3,517

 
 
 
 
 
3,303

 
 
 
 
 
3,177

 
 
 
 
 
3,479

 
 
 
 
Total non-interest-earning assets
(1,187
)
 
 
 
 
 
(731
)
 
 
 
 
 
(649
)
 
 
 
 
 
(429
)
 
 
 
 
 
(10
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
94,498

 
 
 
 
 
$
91,121

 
 
 
 
 
$
89,394

 
 
 
 
 
$
89,468

 
 
 
 
 
$
88,752

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposit accounts
$
55,690

 
$
233

 
1.66
%
 
$
53,294

 
$
219

 
1.63
%
 
$
51,836

 
$
202

 
1.56
%
 
$
51,829

 
$
194

 
1.52
%
 
$
51,006

 
$
188

 
1.47
%
Borrowings of consolidated securitization entities
12,425

 
70

 
2.24
%
 
11,759

 
65

 
2.19
%
 
12,213

 
63

 
2.07
%
 
12,321

 
65

 
2.14
%
 
12,389

 
64

 
2.06
%
Bank term loan

 

 
%
 

 

 
%
 

 

 
%
 

 

 
%
 

 

 
%
Senior unsecured notes
7,940

 
72

 
3.60
%
 
8,251

 
73

 
3.51
%
 
7,933

 
68

 
3.44
%
 
7,760

 
67

 
3.50
%
 
7,757

 
67

 
3.44
%
Total interest-bearing liabilities
76,055

 
375

 
1.96
%
 
73,304

 
357

 
1.93
%
 
71,982

 
333

 
1.86
%
 
71,910

 
326

 
1.84
%
 
71,152

 
319

 
1.78
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest-bearing liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest-bearing deposit accounts
218

 
 
 
 
 
232

 
 
 
 
 
218

 
 
 
 
 
240

 
 
 
 
 
176

 
 
 
 
Other liabilities
3,716

 
 
 
 
 
3,154

 
 
 
 
 
2,752

 
 
 
 
 
2,995

 
 
 
 
 
3,321

 
 
 
 
Total non-interest-bearing liabilities
3,934

 
 
 
 
 
3,386

 
 
 
 
 
2,970

 
 
 
 
 
3,235

 
 
 
 
 
3,497

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities
79,989

 
 
 
 
 
76,690

 
 
 
 
 
74,952

 
 
 
 
 
75,145

 
 
 
 
 
74,649

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total equity
14,509

 
 
 
 
 
14,431

 
 
 
 
 
14,442

 
 
 
 
 
14,323

 
 
 
 
 
14,103

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities and equity
$
94,498

 
 
 
 
 
$
91,121

 
 
 
 
 
$
89,394

 
 
 
 
 
$
89,468

 
 
 
 
 
$
88,752

 
 
 
 
Net interest income
 
 
$
3,916

 
 
 
 
 
$
3,876

 
 
 
 
 
$
3,637

 
 
 
 
 
$
3,587

 
 
 
 
 
$
3,628

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate spread(1)
 
 
 
 
15.83
%
 
 
 
 
 
16.35
%
 
 
 
 
 
15.82
%
 
 
 
 
 
15.81
%
 
 
 
 
 
15.91
%
Net interest margin(2)
 
 
 
 
16.24
%
 
 
 
 
 
16.74
%
 
 
 
 
 
16.20
%
 
 
 
 
 
16.18
%
 
 
 
 
 
16.26
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Twelve Months Ended
Dec 31, 2017
 
Twelve Months Ended
Dec 31, 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
$
11,707

 
$
129

 
1.10
%
 
$
12,152

 
$
63

 
0.52
%
Securities available for sale
4,449

 
59

 
1.33
%
 
3,220

 
33

 
1.02
%
 
 
 
 
 
 
 
 
 
 
 
 
Loan receivables:
 
 
 
 
 
 
 
 
 
 
 
Credit cards, including held for sale
72,795

 
15,941

 
21.90
%
 
65,947

 
14,424

 
21.87
%
Consumer installment loans
1,491

 
137

 
9.19
%
 
1,274

 
117

 
9.18
%
Commercial credit products
1,366

 
139

 
10.18
%
 
1,372

 
139

 
10.13
%
Other
50

 
2

 
4.00
%
 
56

 
2

 
3.57
%
Total loan receivables, including held for sale
75,702

 
16,219

 
21.42
%
 
68,649

 
14,682

 
21.39
%
Total interest-earning assets
91,858

 
16,407

 
17.86
%
 
84,021

 
14,778

 
17.59
%
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
887

 
 
 
 
 
965

 
 
 
 
Allowance for loan losses
(4,942
)
 
 
 
 
 
(3,872
)
 
 
 
 
Other assets
3,304

 
 
 
 
 
3,286

 
 
 
 
Total non-interest-earning assets
(751
)
 
 
 
 
 
379

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
91,107

 
 
 
 
 
$
84,400

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposit accounts
$
53,173

 
$
848

 
1.59
%
 
$
47,194

 
$
727

 
1.54
%
Borrowings of consolidated securitization entities
12,179

 
263

 
2.16
%
 
12,428

 
244

 
1.96
%
Bank term loan(1)

 

 
%
 
556

 
31

 
5.58
%
Senior unsecured notes
7,972

 
280

 
3.51
%
 
7,158

 
246

 
3.44
%
Total interest-bearing liabilities
73,324

 
1,391

 
1.90
%
 
67,336

 
1,248

 
1.85
%
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest-bearing liabilities
 
 
 
 
 
 
 
 
 
 
 
Non-interest-bearing deposit accounts
227

 
 
 
 
 
205

 
 
 
 
Other liabilities
3,129

 
 
 
 
 
3,239

 
 
 
 
Total non-interest-bearing liabilities
3,356

 
 
 
 
 
3,444

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities
76,680

 
 
 
 
 
70,780

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
 
 
 
 
Total equity
14,427

 
 
 
 
 
13,620

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities and equity
$
91,107

 
 
 
 
 
$
84,400

 
 
 
 
Net interest income
 
 
$
15,016

 
 
 
 
 
$
13,530

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate spread(2)
 
 
 
 
15.96
%
 
 
 
 
 
15.74
%
Net interest margin(3)
 
 
 
 
16.35
%
 
 
 
 
 
16.10
%
 
 
 
 
 
 
 
 
 
 
 
 
(1) The effective interest rate for the Bank term loan for the 12 months ended December 31, 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
 
 
 
 
Dec 31,
2017
 
Sep 30,
2017
 
Jun 30,
2017
 
Mar 31,
2017
 
Dec 31,
2016
 
Dec 31, 2017 vs.
Dec 31, 2016
BALANCE SHEET STATISTICS
 
 
 
 
 
 
 
 
 
 
 
 
Total common equity
$
14,234

 
$
14,402

 
$
14,332

 
$
14,363

 
$
14,196

 
$
38

0.3
 %
Total common equity as a % of total assets
14.86
%
 
15.56
%
 
15.73
%
 
16.13
%
 
15.74
%
 
 
(0.88
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Tangible assets
$
94,068

 
$
90,785

 
$
89,362

 
$
87,232

 
$
88,546

 
$
5,522

6.2
 %
Tangible common equity(1)
$
12,494

 
$
12,639

 
$
12,554

 
$
12,545

 
$
12,535

 
$
(41
)
(0.3
)%
Tangible common equity as a % of tangible assets(1)
13.28
%
 
13.92
%
 
14.05
%
 
14.38
%
 
14.16
%
 
 
(0.88
)%
Tangible common equity per share(1)
$
16.22

 
$
16.15

 
$
15.79

 
$
15.47

 
$
15.34

 
$
0.88

5.7
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
REGULATORY CAPITAL RATIOS(2)
 
 
 
 
 
 
 
 
 
 
 
 

Basel III Transition
 
 
 
Total risk-based capital ratio(3)
17.3
%
 
18.7
%
 
18.7
%
 
19.3
%
 
18.5
%
 
 
 
Tier 1 risk-based capital ratio(4)
16.0
%
 
17.3
%
 
17.4
%
 
18.0
%
 
17.2
%
 
 
 
Tier 1 leverage ratio(5)
13.8
%
 
14.6
%
 
14.8
%
 
14.8
%
 
15.0
%
 
 
 
Common equity Tier 1 capital ratio(6)
16.0
%
 
17.3
%
 
17.4
%
 
18.0
%
 
17.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Basel III Fully Phased-in
 
 
 
Common equity Tier 1 capital ratio(6)
15.8
%
 
17.2
%
 
17.2
%
 
17.7
%
 
17.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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, 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 an 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
 
 
 
 
Twelve Months Ended
 
 
 
 
Dec 31,
2017
 
Sep 30,
2017
 
Jun 30,
2017
 
Mar 31,
2017
 
Dec 31,
2016
 
4Q'17 vs. 4Q'16
 
Dec 31,
2017
 
Dec 31,
2016
 
YTD'17 vs. YTD'16
RETAIL CARD
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase volume(1)(2)
$
29,839

 
$
26,347

 
$
27,101

 
$
22,952

 
$
28,996

 
$
843

2.9
 %
 
$
106,239

 
$
101,242

 
$
4,997

4.9
 %
Period-end loan receivables
$
56,230

 
$
52,119

 
$
51,437

 
$
49,905

 
$
52,701

 
$
3,529

6.7
 %
 
$
56,230

 
$
52,701

 
$
3,529

6.7
 %
Average loan receivables, including held for sale
$
53,256

 
$
51,817

 
$
50,533

 
$
50,644

 
$
49,476

 
$
3,780

7.6
 %
 
$
51,570

 
$
46,963

 
$
4,607

9.8
 %
Average active accounts (in thousands)(2)(3)
56,113

 
54,471

 
54,058

 
55,049

 
54,489

 
1,624

3.0
 %
 
55,142

 
53,344

 
1,798

3.4
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and fees on loans(2)
$
3,133

 
$
3,102

 
$
2,900

 
$
2,888

 
$
2,909

 
$
224

7.7
 %
 
$
12,023

 
$
10,898

 
$
1,125

10.3
 %
Other income(2)
$
49

 
$
61

 
$
25

 
$
77

 
$
70

 
$
(21
)
(30.0
)%
 
$
212

 
$
288

 
$
(76
)
(26.4
)%
Retailer share arrangements(2)
$
(771
)
 
$
(795
)
 
$
(657
)
 
$
(681
)
 
$
(801
)
 
$
30

(3.7
)%
 
$
(2,904
)
 
$
(2,870
)
 
$
(34
)
1.2
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PAYMENT SOLUTIONS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase volume(1)
$
4,366

 
$
4,178

 
$
3,930

 
$
3,686

 
$
4,194

 
$
172

4.1
 %
 
$
16,160

 
$
15,641

 
$
519

3.3
 %
Period-end loan receivables
$
16,857

 
$
16,153

 
$
15,595

 
$
15,320

 
$
15,567

 
$
1,290

8.3
 %
 
$
16,857

 
$
15,567

 
$
1,290

8.3
 %
Average loan receivables
$
16,386

 
$
15,848

 
$
15,338

 
$
15,424

 
$
15,076

 
$
1,310

8.7
 %
 
$
15,752

 
$
14,110

 
$
1,642

11.6
 %
Average active accounts (in thousands)(3)
9,421

 
9,183

 
9,031

 
9,090

 
8,844

 
577

6.5
 %
 
9,192

 
8,410

 
782

9.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and fees on loans
$
574

 
$
559

 
$
533

 
$
515

 
$
523

 
$
51

9.8
 %
 
$
2,181

 
$
1,952

 
$
229

11.7
 %
Other income
$
2

 
$
2

 
$
6

 
$
4

 
$
3

 
$
(1
)
(33.3
)%
 
$
14

 
$
13

 
$
1

7.7
 %
Retailer share arrangements
$
(5
)
 
$
(9
)
 
$
(9
)
 
$
(1
)
 
$
(9
)
 
$
4

(44.4
)%
 
$
(24
)
 
$
(26
)
 
$
2

(7.7
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CARECREDIT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase volume(1)
$
2,360

 
$
2,368

 
$
2,445

 
$
2,242

 
$
2,179

 
$
181

8.3
 %
 
$
9,415

 
$
8,585

 
$
830

9.7
 %
Period-end loan receivables
$
8,860

 
$
8,656

 
$
8,426

 
$
8,125

 
$
8,069

 
$
791

9.8
 %
 
$
8,860

 
$
8,069

 
$
791

9.8
 %
Average loan receivables
$
8,727

 
$
8,500

 
$
8,219

 
$
8,064

 
$
7,924

 
$
803

10.1
 %
 
$
8,380

 
$
7,576

 
$
804

10.6
 %
Average active accounts (in thousands)(3)
5,814

 
5,677

 
5,546

 
5,490

 
5,368

 
446

8.3
 %
 
5,634

 
5,174

 
460

8.9
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and fees on loans
$
526

 
$
521

 
$
494

 
$
474

 
$
487

 
$
39

8.0
 %
 
$
2,015

 
$
1,832

 
$
183

10.0
 %
Other income
$
11

 
$
13

 
$
26

 
$
12

 
$
12

 
$
(1
)
(8.3
)%
 
$
62

 
$
43

 
$
19

44.2
 %
Retailer share arrangements
$
(3
)
 
$
(1
)
 
$
(3
)
 
$
(2
)
 
$
(1
)
 
$
(2
)
NM

 
$
(9
)
 
$
(6
)
 
$
(3
)
50.0
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL SYF
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase volume(1)(2)
$
36,565

 
$
32,893

 
$
33,476

 
$
28,880

 
$
35,369

 
$
1,196

3.4
 %
 
$
131,814

 
$
125,468

 
$
6,346

5.1
 %
Period-end loan receivables
$
81,947

 
$
76,928

 
$
75,458

 
$
73,350

 
$
76,337

 
$
5,610

7.3
 %
 
$
81,947

 
$
76,337

 
$
5,610

7.3
 %
Average loan receivables, including held for sale
$
78,369

 
$
76,165

 
$
74,090

 
$
74,132

 
$
72,476

 
$
5,893

8.1
 %
 
$
75,702

 
$
68,649

 
$
7,053

10.3
 %
Average active accounts (in thousands)(2)(3)
71,348

 
69,331

 
68,635

 
69,629

 
68,701

 
2,647

3.9
 %
 
69,968

 
66,928

 
3,040

4.5
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and fees on loans(2)
$
4,233

 
$
4,182

 
$
3,927

 
$
3,877

 
$
3,919

 
$
314

8.0
 %
 
$
16,219

 
$
14,682

 
$
1,537

10.5
 %
Other income(2)
$
62

 
$
76

 
$
57

 
$
93

 
$
85

 
$
(23
)
(27.1
)%
 
$
288

 
$
344

 
$
(56
)
(16.3
)%
Retailer share arrangements(2)
$
(779
)
 
$
(805
)
 
$
(669
)
 
$
(684
)
 
$
(811
)
 
$
32

(3.9
)%
 
$
(2,937
)
 
$
(2,902
)
 
$
(35
)
1.2
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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
 
Twelve Months Ended
 
Dec 31,
2017
 
Sep 30,
2017
 
Jun 30,
2017
 
Mar 31,
2017
 
Dec 31,
2016
 
Dec 31,
2017
COMMON EQUITY MEASURES
 
 
 
 
 
 
 
 
 
 
 
GAAP Total common equity
$
14,234

 
$
14,402

 
$
14,332

 
$
14,363

 
$
14,196

 
 
Less: Goodwill
(991
)
 
(991
)
 
(991
)
 
(992
)
 
(949
)
 
 
Less: Intangible assets, net
(749
)
 
(772
)
 
(787
)
 
(826
)
 
(712
)
 
 
Tangible common equity
$
12,494

 
$
12,639

 
$
12,554

 
$
12,545

 
$
12,535

 
 
Adjustments for certain deferred tax liabilities and certain items in accumulated comprehensive income (loss)
254

 
344

 
337

 
340

 
337

 
 
Basel III - Common equity Tier 1 (fully phased-in)
$
12,748

 
$
12,983

 
$
12,891

 
$
12,885

 
$
12,872

 
 
Adjustment related to capital components during transition
142

 
142

 
146

 
154

 
263

 
 
Basel III - Common equity Tier 1 (transition)
$
12,890

 
$
13,125

 
$
13,037

 
$
13,039

 
$
13,135

 
 
 
 
 
 
 
 
 
 
 
 
 
 
RISK-BASED CAPITAL
 
 
 
 
 
 
 
 
 
 
 
Common equity Tier 1
$
12,890

 
$
13,125

 
$
13,037

 
$
13,039

 
$
13,135

 
 
Add: Allowance for loan losses includible in risk-based capital
1,064

 
1,001

 
985

 
954

 
994

 
 
Risk-based capital
$
13,954

 
$
14,126

 
$
14,022

 
$
13,993

 
$
14,129

 
 
 
 
 
 
 
 
 
 
 
 
 
 
ASSET MEASURES
 
 
 
 
 
 
 
 
 
 
 
Total average assets(2)
$
94,498

 
$
91,121

 
$
89,394

 
$
89,468

 
$
88,752

 
 
Adjustments for:
 
 
 
 
 
 
 
 
 
 
 
Disallowed goodwill and other disallowed intangible assets
(net of related deferred tax liabilities) and other
(1,392
)
 
(1,304
)
 
(1,325
)
 
(1,358
)
 
(1,059
)
 
 
Total assets for leverage purposes
$
93,106

 
$
89,817

 
$
88,069

 
$
88,110

 
$
87,693

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Risk-weighted assets - Basel III (fully phased-in)(3)
$
80,526

 
$
75,614

 
$
74,748

 
$
72,596

 
$
75,941

 
 
Risk-weighted assets - Basel III (transition)(3)
$
80,669

 
$
75,729

 
$
74,792

 
$
72,627

 
$
76,179

 
 
 
 
 
 
 
 
 
 
 
 
 
 
TANGIBLE COMMON EQUITY PER SHARE
 
 
 
 
 
 
 
 
 
 
 
GAAP book value per share
$
18.47

 
$
18.40

 
$
18.02

 
$
17.71

 
$
17.37

 
 
Less: Goodwill
(1.29
)
 
(1.27
)
 
(1.25
)
 
(1.22
)
 
(1.16
)
 
 
Less: Intangible assets, net
(0.96
)
 
(0.98
)
 
(0.98
)
 
(1.02
)
 
(0.87
)
 
 
Tangible common equity per share
$
16.22

 
$
16.15

 
$
15.79

 
$
15.47

 
$
15.34

 
 
 
 
 
 
 
 
 
 
 
 
 
 
ADJUSTED NET EARNINGS
 
 
 
 
 
 
 
 
 
 
 
GAAP net earnings
$
385

 
$
555

 
$
496

 
$
499

 
$
576

 
$
1,935

Adjustment for tax law change(4)
160

 

 

 

 

 
160

Adjusted net earnings
$
545

 
$
555

 
$
496

 
$
499

 
$
576

 
$
2,095

 
 
 
 
 
 
 
 
 
 
 
 
ADJUSTED DILUTED EPS
 
 
 
 
 
 
 
 
 
 
 
GAAP diluted EPS
$
0.49

 
$
0.70

 
$
0.61

 
$
0.61

 
$
0.70

 
$
2.42

Adjustment for tax law change(4)
0.21

 

 

 

 

 
0.20

Adjusted diluted EPS
$
0.70

 
$
0.70

 
$
0.61

 
$
0.61

 
$
0.70

 
$
2.62

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Regulatory measures at December 31, 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.
 
 
(4) Adjustment to exclude the effects to Provision for income taxes in the quarter ended December 31, 2017, resulting from the Tax Act.
 
 

9