Exhibit 99.1 2018 First Quarter Investor Presentation May 11, 2018
Disclaimers Cautionary Statement Regarding Forward-Looking Statements This presentation contains certain forward-looking statements as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections. Forward-looking statements are based on management's current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, actual results could differ materially from those indicated in these forward-looking statements. Factors that could cause actual results to differ materially include global political, economic, business, competitive, market, regulatory and other factors and risks, such as: the impact of macroeconomic conditions and whether industry trends we have identified develop as anticipated; retaining existing partners and attracting new partners, concentration of our revenue in a small number of Retail Card partners, promotion and support of our products by our partners, and financial performance of our partners; cyber-attacks or other security breaches; higher borrowing costs and adverse financial market conditions impacting our funding and liquidity, and any reduction in our credit ratings; our ability to grow our deposits in the future; our ability to securitize our loan receivables, occurrence of an early amortization of our securitization facilities, loss of the right to service or subservice our securitized loan receivables, and lower payment rates on our securitized loan receivables; changes in market interest rates and the impact of any margin compression; effectiveness of our risk management processes and procedures, reliance on models which may be inaccurate or misinterpreted, our ability to manage our credit risk, the sufficiency of our allowance for loan losses and the accuracy of the assumptions or estimates used in preparing our financial statements; our ability to offset increases in our costs in retailer share arrangements; competition in the consumer finance industry; our concentration in the U.S. consumer credit market; our ability to successfully develop and commercialize new or enhanced products and services; our ability to realize the value of acquisitions and strategic investments; reductions in interchange fees; fraudulent activity; failure of third parties to provide various services that are important to our operations; disruptions in the operations of our computer systems and data centers; international risks and compliance and regulatory risks and costs associated with international operations; alleged infringement of intellectual property rights of others and our ability to protect our intellectual property; litigation and regulatory actions; damage to our reputation; our ability to attract, retain and motivate key officers and employees; tax legislation initiatives or challenges to our tax positions and/or interpretations, and state sales tax rules and regulations; a material indemnification obligation to GE under the Tax Sharing and Separation Agreement with GE if we cause the split-off from GE or certain preliminary transactions to fail to qualify for tax-free treatment or in the case of certain significant transfers of our stock following the split-off; regulation, supervision, examination and enforcement of our business by governmental authorities, the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the impact of the Consumer Financial Protection Bureau’s regulation of our business; impact of capital adequacy rules and liquidity requirements; restrictions that limit our ability to pay dividends and repurchase our common stock, and restrictions that limit the Synchrony Bank’s ability to pay dividends to us; regulations relating to privacy, information security and data protection; use of third-party vendors and ongoing third-party business relationships; and failure to comply with anti-money laundering and anti-terrorism financing laws. For the reasons described above, we caution you against relying on any forward-looking statements, which should also be read in conjunction with the other cautionary statements that are included elsewhere in this presentation and in our public filings, including under the heading “Risk Factors” in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2017, as filed on February 22, 2018. You should not consider any list of such factors to be an exhaustive statement of all of the risks, uncertainties, or potentially inaccurate assumptions that could cause our current expectations or beliefs to change. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as otherwise may be required by law. Non-GAAP Measures The information provided herein includes a financial measure that is not prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). We refer to “managed-basis” as presenting certain loan performance measures as if loans sold by us to our securitization trusts were never sold and derecognized in our GAAP financial statements. We believe it is useful to consider these performance measures on a managed-basis for 2009 when comparing to similar GAAP measures in later years since we serviced the securitized and owned loans, and related accounts, in the same manner without regard to ownership of the loans. The reconciliation of the managed-basis loan performance measures in this presentation to the comparable GAAP measures for the twelve months ended December 31, 2009 is included at the end of this presentation in “Appendix-Non-GAAP Reconciliations.” 2
Synchrony Financial Overview Leading Consumer Finance Business Attractive Growth and Ample • Largest Private Label Credit Card (PLCC) Opportunities provider in US(a) • Strong receivables growth • A leader in financing for major consumer • Significant opportunity to leverage purchases and healthcare services long-standing partnerships to increase • Long-standing and diverse partner base penetration • Opportunity to attract new partners Strong Value Proposition for Partners • Developing broad product suite to and Consumers build a leading, full-scale online bank • Advanced data analytics and targeted marketing capabilities Strong Financial Profile and • Dedicated team members support partners to help maximize program effectiveness Operating Performance • Enhanced sales growth and additional • Solid fundamentals with attractive economic benefits for partners returns • Access to instant credit, promotional • Strong capital and liquidity with financing, and rewards for customers diverse funding profile • Paid quarterly common stock dividend of $0.15 per share in 1Q18 and Robust Data and Technology Capabilities continued to execute $1.64 billion share repurchase program (through • Deep partner integration enables June 30, 2018) customized loyalty products across channels • Partner and cardholder focused mobile payments and e-commerce solutions • Leveraging digital, loyalty, and analytics capabilities to augment growth 3 (a) Source: The Nilson Report (June 2017, Issue #1112) as measured by PLCC purchase volume and receivables, based on 2016 data.
Business Overview
Partner-Centric Business with Leading Sales Platforms Retail Card Payment Solutions CareCredit Private label credit cards, Promotional financing for Promotional financing Dual Cards™, general major consumer to consumers for purpose co-branded credit purchases, offering health and personal care cards and small- and private label credit cards procedures, products, medium-sized business & installment loans and services credit products Interest and Fees on Loans(a) $12,231 $2,228 $2,055 Loan Receivables(b) $52 $17 $9 (a) For 2Q17 through 1Q18, $ in millions. (b) $ in billions, as of March 31, 2018. 5
Customized Credit Products Payment Retail Card CareCredit Solutions Private Label Dual CardTM Co-Brand Private Label Private Label Dual CardTM Retailer only Accepted at Accepted at Retailer and private Accepted at Accepted at acceptance network locations network locations network acceptance provider network network locations locations Affinity to retailer, provides customized Big-ticket focus, offering Offering promotional financing, benefits & features promotional financing expanded card utility • Cash back, discounts • Home • Dental • Credit events & promotions • Furniture • Vision • Reward/best customer programs • Electronics • Cosmetic • Auto • Veterinary • Luxury • Power sports 6
Fast-Growing Online Bank Synchrony Bank FDIC-Insured Deposit Products Certificates of Deposit Money Market Accounts Savings Accounts IRA Money Market Accounts IRA Certificates of Deposit Competitive rates and Evaluating new product Opportunity to further superior service afforded offerings - checking, debit, leverage synergies by low cost structure of bill payment, small with cardholder base online bank business deposit accounts Strong Direct Deposit Growth $ in billions $45.0 $39.4 $32.5 $21.3 1Q15 1Q16 1Q17 1Q18 7
Long-Standing Partnerships Length of Major Partner 39 24 21 20 18 18 13 10 Relationships (Years) (a) Last Renewal 2014 2014 2014 2014 2013 2013 2017 2015 Contractual Expiration (a) % of 2017 Retail Card Interest and Fees on Loans (b) 21% 21% 21% 14% 12% 11% <1% 2018 2019 2020 2021 2022 2023 2024+ Partners (b) 1 2 4 4 5 5 8 (a) Existing partners as of March 31, 2018. (b) Excludes certain credit card portfolios that were sold, have not been renewed, or expired in 2018, which represent less than 1% of our total Retail Card interest and fees on loans for the year ended December 31, 2017. Does not reflect the announced PayPal extension which is expected to close in the third quarter of 8 2018.
Deep Integration Drives 2-3x Market Growth Rate 11.7% 13.2% 8.8% 9.2% 6.1% 7.0% 3.9% 2.2% 2.5% 2.0% 1.0% 0.0% Mass Electronics Healthcare Apparel/Dept. Home Furniture 2016 Market Size ($ in billions) $538 $288 $246 $209 $236 $88 2012-2016 Market Growth Rate 2012-2016 Synchrony Financial Purchase Volume Growth Rate • Over 85 years of retail heritage • Significant scale across platforms • Robust data capture enables more customized offers • Analytics and data insights help drive growth • Joint executive management of programs—1,000+ SYF FTEs dedicated to drive partner sales • Collaboration with partners ensures sales teams are aligned with program goals • Economic benefits and incentives align goals and drive profitable program growth Sources for market data: Kantar Retail (2016 Mass & Apparel/Dept. market projections); IBIS World Research Group; CareCredit industry research; Joint Centers for Housing Studies, Harvard University; Consumer Electronics Association. 9
Attracting New Partners Retail Card Payment Solutions CareCredit We attract partners who value our: We seek deals that: • Experience & partnership—long history of • Have an appropriate risk-reward profile improving sales, customer loyalty, and retention • Enable us to own key program aspects: • Differentiated capabilities: - Underwriting - Marketing and analytics - Collections - Innovation - Mobile and online - Underwriting and lifecycle management - On-site dedicated teams 10 Track record of winning programs 1010
Robust Data, Analytics and Digital Capabilities
Proprietary Closed-Loop Network Advantages Enables Valuable Data Capture and Eliminates Interchange Fees General Purpose Card and Co-Branded Cards Customer Merchant Acquirer Network Issuer • Limited data can be collected by the card issuer when a General Purpose Citi Capital One Credit Card or traditional co-branded Chase card is used • Valuable incremental data capture Date Merch. Channel Brand Cat./SKU $ occurs on transactions that run over the Synchrony Financial closed loop 1/2/18 Department $83.44 Store Partner network 1/9/18 Department $212.17 - Brand or category Store Partner - SKU-level data TM Synchrony Financial Closed Loop Network for PLCC and Dual Card - Channel: in-store, online, or mobile - Provides the ability to analyze significantly more data than general purpose credit cards - Ability to analyze SKU, category Date Merch. Channel Brand Cat./SKU $ and other important data has 1/2/18 Department In- DKNY Women’s $83.44 expanded Store Partner Store Shoes 468XUTY • No interchange fees when Synchrony 1/9/18 Department Mobile Coach Women’s $212.17 Financial Private Label Credit Cards or Store Partner Handbags Dual CardsTM are used over our 229HHREO network *illustrative data 12
Analytics at Synchrony Financial Evolution of Analytics Past Present and Future • Generic Offers • Customized Offers • Mass Marketing • 1-on-1 Marketing • Portfolio Level Analytics • Customer/Channel/Store Level Analytics • Customer 360° View • 170+ Dedicated Analytics Professionals • Big Data Platform 13
Innovative Digital Capabilities Expanding Online and Mobile Capabilities Expanding Digital Capabilities Consumer • Investing in enhanced user experience • Investing in enhanced user experience • Mobile applications deliver customized features - Customized offers including rewards, retail offers, and alerts - Quickscreen • Developed SyPI, a mobile platform that can be - Auto pre-fill rapidly integrated across retailers and wallets • Mobile applications deliver customized features including • Significant experience with online retailers rewards, retail offers, and alerts Wallet-Agnostic Mobile Payments Strategy— Small Business Offering Choice to Retail Partners and Consumers • Enhance user experience and features: - Project-level invoicing and billing - Invoice search - Simplified payments Benefits to Synchrony Financial and Our Customers Synchrony Bank • Preserving unique benefits and value propositions • Upgraded digital banking platform; including Remote Deposit Capture • Synchrony Financial continuing to capture valuable customer data • Responsive design allows customers to access account via any device • Developing proprietary solutions like Digital Card 14
Performance & Strategic Priorities
1Q18 Highlights Financial Highlights Business Highlights • $640 million Net Earnings, $0.83 diluted EPS Added new partnerships • Continued growth across the business ‒ Loan Receivables up 6% ‒ Net Interest Income up 7% ‒ Purchase Volume up 3% ‒ Average Active Accounts up 2% • Net Charge-Offs 6.14% compared to 5.33% in the prior Expanded our CareCredit network year • Provision for Loan Losses up 4% primarily driven by credit normalization and growth • Efficiency Ratio 30.9% compared to 30.3% in the prior year • Deposits up $5.0 billion compared to prior year, Renewed key relationships comprising 73% of funding • Strong Capital and Liquidity ‒ 16.8% CET1 & $18.6 billion Liquid Assets • Paid quarterly dividend of $0.15 per share and repurchased $410 million of common stock 16
Peer Comparison: 1Q18 Significant Growth Strong Margins Strong Balance Sheet Purchase Volume Growth(a) Risk-Adjusted Yield(b) CET1 Ratio(c) 18.3% 16.8% 15.3% 11.0% 11.8% 10.4% 10.5% 9.8% 9.5% 9.4% 5.9% 2.6% COF AXP DFS SYF SYF AXP COF DFS SYF DFS COF AXP Loan Receivables Growth(d) Efficiency Ratio(a) Liquidity % of Assets(e) 66.6% 12.8% 20.2% 19.2% 18.3% 16.9% 9.7% 45.8% 8.2% 37.6% 6.1% 30.9% AXP DFS COF SYF SYF DFS COF AXP SYF AXP DFS COF (a) Segment data for AXP-U.S Consumer Services and COF-Domestic Card. Other data-total (d) Segment data for AXP-U.S Consumer Services (ex-HFS), COF-Domestic Card, and DFS-Credit Card. company level. SYF-total company level. (b) SYF yield calculated as loan receivable yield less net charge-off rate. AXP yield calculated as (e) AXP and DFS calculated as: (cash and cash equivalents + investment securities) / total assets. COF total card member loan yield less net charge-off rate on card member loans (ex-HFS). Other calculated as: (cash and cash equivalents + AFS securities) / total assets. SYF calculated as: (cash peer information calculated as credit card yield less net charge-off rate on credit cards. and cash equivalents + debt securities) / total assets. (c) CET1 ratios are on an estimated, fully phased-in basis. COF is Basel III Standardized Approach subject to transition provisions. Sources: Company filings and SNL. 17 Purchase volume and loan receivables growth are 1Q18 vs. 1Q17.
Focus on Higher Quality Asset Base Disciplined Underwriting Stronger Portfolio (a) FICO, consumer accounts opened since Consumer FICO beginning of 2010 721+ 33% 36% 34% 34% 34% 34% 34% 35% 721+ 39% 28% 661-720 34% 36% 37% 38% 38% 38% 38% 661-720 38% 20% 601-660 20% 21% 21% 20% 20% 20% 601-660 22% 19% 19% ≤ 600 1% ≤ 600 10% 9% 8% 8% 8% 8% 8% At origination 2008 1Q12 1Q13 1Q14 1Q15 1Q16 1Q17 1Q18 • Synchrony Financial controls underwriting and credit line decisions • Focus on stronger underwriting has led to higher quality portfolio - 73% of loan receivables have FICO > 660 (a) Based on most recent FICO scores available for our customers in each period, weighted by balance, as a % of period-end receivables. If FICO score was not available credit bureau based scores were mapped to a FICO equivalent. If neither score was available, the account was excluded. 18
Historical Net Charge-Offs & Risk-Adjusted Yield (a,c) Net Charge-Off Ratio Delivered Strong 12.00% Risk-Adjusted Returns 10.00% • Net charge-off performance was 8.00% generally consistent with general off Ratio - 6.00% purpose card issuers during the SYF financial crisis 4.00% Bank Card Average Net Charge Net • Risk-adjusted yield outperformed 2.00% general purpose card issuers by >700 0.00% bps through the financial crisis 2009 2010 2011 2012 2013 2014 2015 2016 2017 • Risk-adjusted yield outperformance has remained >700 bps post-crisis Risk-Adjusted Yield (b,c) 18.00% (a) Peers include: AXP U.S. Card Services prior to 2014 and AXP U.S. 16.00% Consumer Services starting in 2014, BAC U.S. Credit Card, C Citi- Branded Cards North America, COF Domestic Card, DFS Credit 14.00% Card, JPM Credit Card, and WFC Consumer Credit Card. SYF – SYF total company level. 12.00% Bank Card Average (b) Peers include: AXP U.S. Card Services prior to 2014 and AXP U.S. Consumer Services starting in 2014, BAC U.S. Credit Card, C Citi- 10.00% Branded Cards North America, COF Domestic Card, DFS Credit Card, and WFC Consumer Credit Card. SYF – total company level. 8.00% SYF yield calculated as loan receivable yield less net charge-off rate. Adjusted Yield - Peer information calculated as credit card yield less net charge-off 6.00% rate on credit cards. Citi-Branded Card yield calculated as average quarterly yield less net charge-off rate on credit cards (average Risk 4.00% quarterly net charge-off rate). 2.00% (c) Data on a managed-basis for 2009. See non-GAAP reconciliation in appendix. 0.00% Sources: Company filings. Risk-adjusted yield involved 19 2009 2010 2011 2012 2013 2014 2015 2016 2017 calculations by SYF based upon company filings.
Retailer Share Arrangements (RSA) Provides a countercyclical buffer in stressed environments: 2013-2017 RSAs were 4.3% of average loan receivables(a) 2009 RSAs were 1.6% of average loan receivables(b) Shared Components Illustrative Examples Operating Program SYF Share of Return Total Program Return Environment Return Retailer Share of Return Allocation 4.0% Program Revenue • Interest Income 2.5% 50% 50% • Fee Income 1.25% • Interchange Fees 2.75% Normal 100% Program Expenses 1.5% • Interest Expense SYF – 69% of Total Program Program Return • Provision for Loan Return Losses • Loyalty Expense • Operating Expenses 2.5% 50% 50% 1.0% 0.50% 1.5% 2.00% 100% Performance LowerProgram Total Program SYF – 80% of Return Program Return (a) RSA as a percentage of average loan receivables averaged over the five year period. 20 (b) Loan receivables on a managed-basis in 2009. See non-GAAP reconciliation in appendix.
Diverse Funding Sources and Strong Liquidity Diverse Funding Sources Strong Liquidity Profile % of liabilities excluding non-debt liabilities $ in billions $24.6 $6.0 Undrawn Credit Facilities Liquid $18.6 Deposits 73% 70%-75% assets 1Q18 • Diverse and stable funding sources Securitized Debt 16% 15%-20% • Fast-growing direct deposit platform to support growth Unsecured Debt 11% 10%-15% • Positioned slightly asset 1Q18 Long-term sensitive target 21
Strong Capital Profile Strong Position Relative to Peers CET1 Ratio – 1Q18(a) 16.8% • Current level of capital well above peers 10.6% • Generating solid relative earnings power • Significant capital return opportunity over the long-term(b) SYF Peer Average Capital Deployment Priorities ROA – 1Q18 1. Organic growth 2.7% 2.6% 2. Program acquisitions 3. Dividends 4. Share buybacks 5. M&A opportunities SYF Peer Average Peers include AXP, DFS, and COF. (a) CET1 ratios are on an estimated, fully phased-in basis. COF is Basel III Standardized Approach subject to transition provisions. (b) Subject to board and regulatory approval. 22 Sources: Company filings and SNL.
Capital Deployment Capital Payout Distribution 120% 109% 100% 97% 80% 63% 84% 60% 75% 40% 43% 20% 20% 22% 25% 0% (a) (b) (c) 2016 SYF Capital Plan 2017 SYF Capital Plan Peer Capital Plan Average Dividends Buybacks • Improved capital payout distribution, with stronger buyback weighting ‒ Assuming loan receivables growth of 7%, an additional ~40% of capital would be consumed(d) • Opportunity to enhance components of capital return (a) 2016 SYF Capital Plan is for illustrative purposes only. It incorporates the 7/7/16 capital plan announcement of $0.13/share quarterly dividend and $952 million buyback over the prior four quarters of net earnings ending 2Q16. (b) 2017 SYF Capital Plan is for illustrative purposes only. It incorporates the 5/18/17 capital plan announcement of $0.15/share quarterly dividend and $1.64 billion buyback over the prior four quarters of net earnings ending 2Q17. (c) Data captures announced capital plans over the prior four quarters of earnings ending 2Q17. Peers include AXP, COF, and DFS. (d) Allocation for growth is estimated by applying 2Q16 CET1 Ratio (fully phased-in basis) to the 2017 period-end loan receivables growth rate of 7% over the prior four quarters of net earnings ending 2Q17. Sources: Company filings and SNL. 23
Strategic Priorities Grow our business through our three sales platforms • Grow existing retailer penetration • Continue to innovate and provide robust cardholder value propositions • Add new partners and programs with attractive risk and return profiles Invest in ‘Next Generation’ data, analytics and digital capabilities • Continue to expand the use of advanced analytics to leverage SKU level data to drive sales and customer loyalty • Further develop a frictionless mobile & digitized environment through the use of customer journey insights • Leverage unstructured data and machine learning to drive an even higher level of customer engagement Position business for long-term growth • Explore opportunities to expand the core business (e.g., small business and proprietary networks) • Continue to grow Synchrony Bank — enhance offerings to increase loyalty, diversify funding and drive profitability • Investment in core infrastructure to drive scale, efficiency and agility Operate with a strong balance sheet and financial profile • Maintain strong capital and liquidity • Deliver earnings growth at attractive returns Leverage strong capital position • Organic growth, program acquisitions, and start-up opportunities • Continue capital plan execution through dividends and share repurchase program, subject to Board and regulatory approvals • Invest in capability-enhancing technologies and businesses 24
Appendix
Non-GAAP Reconciliation The following table sets forth a reconciliation between GAAP results and non-GAAP managed-basis results for 2009. Twelve months ended December 31, 2009 Net charge-offs as a % of average loan receivables, including held for sale: GAAP 11.3% Securitization adjustments (0.6)% Managed-basis 10.7% Interest and fees on loans as a % of average loan receivables, including held for sale: GAAP 19.7% Securitization adjustments 0.8% Managed-basis 20.5% Retailer share arrangements as a % of average loan receivables, including held for sale: GAAP 3.4% Securitization adjustments (1.8)% Managed-basis 1.6% Risk-adjusted yield(a): GAAP 8.4% Securitization adjustments 1.4% Managed-basis 9.8% (a) Risk-adjusted yield is equal to interest and fees on loans as a % of average loan receivables less net charge-offs as a % of average loan receivables. 26