Exhibit 99.2


SYNCHRONY FINANCIAL
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL SUMMARY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(unaudited, in millions, except per share statistics)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
 
 
Nine Months Ended
 
 
 
 
Sep 30,
2019
 
Jun 30,
2019
 
Mar 31,
2019
 
Dec 31,
2018
 
Sep 30,
2018
 
3Q'19 vs. 3Q'18
 
Sep 30,
2019
 
Sep 30,
2018
 
YTD'19 vs. YTD'18
EARNINGS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income
$
4,389

 
$
4,155

 
$
4,226

 
$
4,333

 
$
4,206

 
$
183

4.4
 %
 
$
12,770

 
$
11,785

 
$
985

8.4
 %
Retailer share arrangements
(1,016
)
 
(859
)
 
(954
)
 
(855
)
 
(871
)
 
(145
)
16.6
 %
 
(2,829
)
 
(2,244
)
 
(585
)
26.1
 %
Provision for loan losses
1,019

 
1,198

 
859

 
1,452

 
1,451

 
(432
)
(29.8
)%
 
3,076

 
4,093

 
(1,017
)
(24.8
)%
Net interest income, after retailer share arrangements and provision for loan losses
2,354

 
2,098

 
2,413

 
2,026

 
1,884

 
470

24.9
 %
 
6,865

 
5,448

 
1,417

26.0
 %
Other income
85

 
90

 
92

 
64

 
63

 
22

34.9
 %
 
267

 
201

 
66

32.8
 %
Other expense
1,064

 
1,059

 
1,043

 
1,078

 
1,054

 
10

0.9
 %
 
3,166

 
3,017

 
149

4.9
 %
Earnings before provision for income taxes
1,375

 
1,129

 
1,462

 
1,012

 
893

 
482

54.0
 %
 
3,966

 
2,632

 
1,334

50.7
 %
Provision for income taxes
319

 
276

 
355

 
229

 
222

 
97

43.7
 %
 
950

 
625

 
325

52.0
 %
Net earnings
$
1,056

 
$
853

 
$
1,107

 
$
783

 
$
671

 
$
385

57.4
 %
 
$
3,016

 
$
2,007

 
$
1,009

50.3
 %
Net earnings attributable to common stockholders
$
1,056

 
$
853

 
$
1,107

 
$
783

 
$
671

 
$
385

57.4
 %
 
$
3,016


$
2,007


$
1,009

50.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


 


 


 
 
 
 
 
 
 
 


 


 


 
COMMON SHARE STATISTICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic EPS
$
1.60

 
$
1.25

 
$
1.57

 
$
1.09

 
$
0.91

 
$
0.69

75.8
 %
 
$
4.42

 
$
2.68

 
$
1.74

64.9
 %
Diluted EPS
$
1.60

 
$
1.24

 
$
1.56

 
$
1.09

 
$
0.91

 
$
0.69

75.8
 %
 
$
4.40

 
$
2.66

 
$
1.74

65.4
 %
Dividend declared per share
$
0.22

 
$
0.21

 
$
0.21

 
$
0.21

 
$
0.21

 
$
0.01

4.8
 %
 
$
0.64

 
$
0.51

 
$
0.13

25.5
 %
Common stock price
$
34.09

 
$
34.67

 
$
31.90

 
$
23.46

 
$
31.08

 
$
3.01

9.7
 %
 
$
34.09

 
$
31.08

 
$
3.01

9.7
 %
Book value per share
$
23.13

 
$
22.03

 
$
21.35

 
$
20.42

 
$
19.47

 
$
3.66

18.8
 %
 
$
23.13

 
$
19.47

 
$
3.66

18.8
 %
Tangible common equity per share(1)
$
19.68

 
$
18.60

 
$
17.96

 
$
17.41

 
$
16.51

 
$
3.17

19.2
 %
 
$
19.68

 
$
16.51

 
$
3.17

19.2
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning common shares outstanding
668.9

 
688.8

 
718.8

 
718.7

 
746.6

 
(77.7
)
(10.4
)%
 
718.8

 
770.5

 
(51.7
)
(6.7
)%
Issuance of common shares
—

 
—

 
—

 
—

 
—

 
—

—
 %
 
—

 
—

 
—

—
 %
Stock-based compensation
0.4

 
1.2

 
0.9

 
0.1

 
2.4

 
(2.0
)
(83.3
)%
 
2.5

 
2.9

 
(0.4
)
(13.8
)%
Shares repurchased
(15.6
)
 
(21.1
)
 
(30.9
)
 
—

 
(30.3
)
 
14.7

(48.5
)%
 
(67.6
)
 
(54.7
)
 
(12.9
)
23.6
 %
Ending common shares outstanding
653.7

 
668.9

 
688.8

 
718.8

 
718.7

 
(65.0
)
(9.0
)%
 
653.7

 
718.7

 
(65.0
)
(9.0
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding
658.3

 
683.6

 
706.3

 
718.7

 
734.9

 
(76.6
)
(10.4
)%
 
682.5

 
750.2

 
(67.7
)
(9.0
)%
Weighted average common shares outstanding (fully diluted)
661.7

 
686.5

 
708.9

 
720.9

 
738.8

 
(77.1
)
(10.4
)%
 
685.6

 
755.7

 
(70.1
)
(9.3
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Tangible Common Equity ("TCE") is a non-GAAP measure. For corresponding reconciliation of TCE to a GAAP financial measure, see Reconciliation of Non-GAAP Measures and Calculations of Regulatory Measures.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

1


SYNCHRONY FINANCIAL
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SELECTED METRICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(unaudited, $ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
 
 
 
Nine Months Ended
 
 
 
 
Sep 30,
2019
 
Jun 30,
2019
 
Mar 31,
2019
 
Dec 31,
2018
 
Sep 30,
2018
 
3Q'19 vs. 3Q'18
 
Sep 30,
2019
 
Sep 30,
2018
 
YTD'19 vs. YTD'18
PERFORMANCE METRICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on assets(1)
3.9
%
 
3.3
%
 
4.3
%
 
2.9
%
 
2.7
%
 


1.2
 %
 
3.8
%
 
2.8
%
 


1.0
 %
Return on equity(2)
28.3
%
 
23.1
%
 
30.4
%
 
21.5
%
 
18.5
%
 


9.8
 %
 
27.2
%
 
18.7
%
 


8.5
 %
Return on tangible common equity(3)
33.4
%
 
27.4
%
 
35.8
%
 
25.2
%
 
21.5
%
 


11.9
 %
 
32.2
%
 
21.5
%
 


10.7
 %
Net interest margin(4)
16.29
%
 
15.75
%
 
16.08
%
 
16.06
%
 
16.41
%
 


(0.12
)%
 
16.04
%
 
15.94
%
 


0.10
 %
Efficiency ratio(5)
30.8
%
 
31.3
%
 
31.0
%
 
30.4
%
 
31.0
%
 


(0.2
)%
 
31.0
%
 
31.0
%
 


—
 %
Other expense as a % of average loan receivables, including held for sale
4.66
%
 
4.78
%
 
4.71
%
 
4.79
%
 
4.82
%
 


(0.16
)%
 
4.72
%
 
4.96
%
 


(0.24
)%
Effective income tax rate
23.2
%
 
24.4
%
 
24.3
%
 
22.6
%
 
24.9
%
 


(1.7
)%
 
24.0
%
 
23.7
%
 


0.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CREDIT QUALITY METRICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net charge-offs as a % of average loan receivables, including held for sale
5.35
%
 
6.01
%
 
6.06
%
 
5.54
%
 
4.97
%
 


0.38
 %
 
5.80
%
 
5.67
%
 


0.13
 %
30+ days past due as a % of period-end loan receivables(6)
4.47
%
 
4.43
%
 
4.92
%
 
4.76
%
 
4.59
%
 


(0.12
)%
 
4.47
%
 
4.59
%
 


(0.12
)%
90+ days past due as a % of period-end loan receivables(6)
2.07
%
 
2.16
%
 
2.51
%
 
2.29
%
 
2.09
%
 


(0.02
)%
 
2.07
%
 
2.09
%
 


(0.02
)%
Net charge-offs
$
1,221

 
$
1,331

 
$
1,344

 
$
1,248

 
$
1,087

 
$
134

12.3
 %
 
$
3,896

 
$
3,444

 
$
452

13.1
 %
Loan receivables delinquent over 30 days(6)
$
3,723

 
$
3,625

 
$
3,957

 
$
4,430

 
$
4,021

 
$
(298
)
(7.4
)%
 
$
3,723

 
$
4,021

 
$
(298
)
(7.4
)%
Loan receivables delinquent over 90 days(6)
$
1,723

 
$
1,768

 
$
2,019

 
$
2,135

 
$
1,833

 
$
(110
)
(6.0
)%
 
$
1,723

 
$
1,833

 
$
(110
)
(6.0
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses (period-end)
$
5,607

 
$
5,809

 
$
5,942

 
$
6,427

 
$
6,223

 
$
(616
)
(9.9
)%
 
$
5,607

 
$
6,223

 
$
(616
)
(9.9
)%
Allowance coverage ratio(7)
6.74
%
 
7.10
%
 
7.39
%
 
6.90
%
 
7.11
%
 


(0.37
)%
 
6.74
%
 
7.11
%
 


(0.37
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BUSINESS METRICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase volume(8)(9)
$
38,395

 
$
38,291

 
$
32,513

 
$
40,320

 
$
36,443

 
$
1,952

5.4
 %
 
$
109,199

 
$
100,337

 
$
8,862

8.8
 %
Period-end loan receivables
$
83,207

 
$
81,796

 
$
80,405

 
$
93,139

 
$
87,521

 
$
(4,314
)
(4.9
)%
 
$
83,207

 
$
87,521

 
$
(4,314
)
(4.9
)%
Credit cards
$
79,788

 
$
78,446

 
$
77,251

 
$
89,994

 
$
84,319

 
$
(4,531
)
(5.4
)%
 
$
79,788

 
$
84,319

 
$
(4,531
)
(5.4
)%
Consumer installment loans
$
2,050

 
$
1,983

 
$
1,860

 
$
1,845

 
$
1,789

 
$
261

14.6
 %
 
$
2,050

 
$
1,789

 
$
261

14.6
 %
Commercial credit products
$
1,317

 
$
1,328

 
$
1,256

 
$
1,260

 
$
1,353

 
$
(36
)
(2.7
)%
 
$
1,317

 
$
1,353

 
$
(36
)
(2.7
)%
Other
$
52

 
$
39

 
$
38

 
$
40

 
$
60

 
$
(8
)
(13.3
)%
 
$
52

 
$
60

 
$
(8
)
(13.3
)%
Average loan receivables, including held for sale
$
90,556

 
$
88,792

 
$
89,903

 
$
89,340

 
$
86,783

 
$
3,773

4.3
 %
 
$
89,752

 
$
81,270

 
$
8,482

10.4
 %
Period-end active accounts (in thousands)(9)(10)
77,094

 
76,065

 
74,812

 
80,339

 
75,457

 
1,637

2.2
 %
 
77,094

 
75,457

 
1,637

2.2
 %
Average active accounts (in thousands)(9)(10)
76,695

 
75,525

 
77,132

 
77,382

 
75,482

 
1,213

1.6
 %
 
76,653

 
72,594

 
4,059

5.6
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIQUIDITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liquid assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and equivalents
$
11,461

 
$
11,755

 
$
12,963

 
$
9,396

 
$
12,068

 
$
(607
)
(5.0
)%
 
$
11,461

 
$
12,068

 
$
(607
)
(5.0
)%
Total liquid assets
$
15,201

 
$
16,665

 
$
17,360

 
$
14,822

 
$
18,214

 
$
(3,013
)
(16.5
)%
 
$
15,201

 
$
18,214

 
$
(3,013
)
(16.5
)%
Undrawn credit facilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Undrawn credit facilities
$
6,500

 
$
7,050

 
$
6,050

 
$
4,375

 
$
5,125

 
$
1,375

26.8
 %
 
$
6,500

 
$
5,125

 
$
1,375

26.8
 %
Total liquid assets and undrawn credit facilities
$
21,701

 
$
23,715

 
$
23,410

 
$
19,197

 
$
23,339

 
$
(1,638
)
(7.0
)%
 
$
21,701

 
$
23,339

 
$
(1,638
)
(7.0
)%
Liquid assets % of total assets
14.35
%
 
15.66
%
 
16.47
%
 
13.88
%
 
17.42
%
 


(3.07
)%
 
14.35
%
 
17.42
%
 


(3.07
)%
Liquid assets including undrawn credit facilities % of total assets
20.48
%
 
22.29
%
 
22.21
%
 
17.98
%
 
22.32
%
 


(1.84
)%
 
20.48
%
 
22.32
%
 


(1.84
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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, plus other income, less retailer share arrangements.
 
 
 
 
 
 
 
(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) Includes activity and accounts associated with loan receivables held for sale.
 
 
 
 
 
 
 
(10) 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,
2019
 
Jun 30,
2019
 
Mar 31,
2019
 
Dec 31,
2018
 
Sep 30,
2018
 
3Q'19 vs. 3Q'18
 
Sep 30,
2019
 
Sep 30,
2018
 
YTD'19 vs. YTD'18
Interest income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and fees on loans
$
4,890

 
$
4,636

 
$
4,687

 
$
4,774

 
$
4,617

 
$
273

5.9
 %
 
$
14,213

 
$
12,870

 
$
1,343

10.4
 %
Interest on cash and investment securities
91

 
102

 
99

 
102

 
77

 
14

18.2
 %
 
292

 
242

 
50

20.7
 %
Total interest income
4,981

 
4,738

 
4,786

 
4,876

 
4,694

 
287

6.1
 %
 
14,505

 
13,112

 
1,393

10.6
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest on deposits
411

 
397

 
375

 
350

 
314

 
97

30.9
 %
 
1,183

 
836

 
347

41.5
 %
Interest on borrowings of consolidated securitization entities
88

 
90

 
100

 
104

 
86

 
2

2.3
 %
 
278

 
240

 
38

15.8
 %
Interest on senior unsecured notes
93

 
96

 
85

 
89

 
88

 
5

5.7
 %
 
274

 
251

 
23

9.2
 %
Total interest expense
592

 
583

 
560

 
543

 
488

 
104

21.3
 %
 
1,735

 
1,327

 
408

30.7
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income
4,389

 
4,155

 
4,226

 
4,333

 
4,206

 
183

4.4
 %
 
12,770

 
11,785

 
985

8.4
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Retailer share arrangements
(1,016
)
 
(859
)
 
(954
)
 
(855
)
 
(871
)
 
(145
)
16.6
 %
 
(2,829
)
 
(2,244
)
 
(585
)
26.1
 %
Provision for loan losses
1,019

 
1,198

 
859

 
1,452

 
1,451

 
(432
)
(29.8
)%
 
3,076

 
4,093

 
(1,017
)
(24.8
)%
Net interest income, after retailer share arrangements and provision for loan losses
2,354

 
2,098

 
2,413

 
2,026

 
1,884

 
470

24.9
 %
 
6,865

 
5,448

 
1,417

26.0
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interchange revenue
197

 
194

 
165

 
193

 
182

 
15

8.2
 %
 
556

 
517

 
39

7.5
 %
Debt cancellation fees
64

 
69

 
68

 
70

 
65

 
(1
)
(1.5
)%
 
201

 
197

 
4

2.0
 %
Loyalty programs
(203
)
 
(192
)
 
(167
)
 
(208
)
 
(196
)
 
(7
)
3.6
 %
 
(562
)
 
(543
)
 
(19
)
3.5
 %
Other
27

 
19

 
26

 
9

 
12

 
15

125.0
 %
 
72

 
30

 
42

140.0
 %
Total other income
85

 
90

 
92

 
64

 
63

 
22

34.9
 %
 
267

 
201

 
66

32.8
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other expense:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Employee costs
359

 
358

 
353

 
353

 
365

 
(6
)
(1.6
)%
 
1,070

 
1,074

 
(4
)
(0.4
)%
Professional fees
205

 
231

 
232

 
231

 
232

 
(27
)
(11.6
)%
 
668

 
575

 
93

16.2
 %
Marketing and business development
139

 
135

 
123

 
166

 
131

 
8

6.1
 %
 
397

 
362

 
35

9.7
 %
Information processing
127

 
123

 
113

 
118

 
105

 
22

21.0
 %
 
363

 
308

 
55

17.9
 %
Other
234

 
212

 
222

 
210

 
221

 
13

5.9
 %
 
668

 
698

 
(30
)
(4.3
)%
Total other expense
1,064

 
1,059

 
1,043

 
1,078

 
1,054

 
10

0.9
 %
 
3,166

 
3,017

 
149

4.9
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings before provision for income taxes
1,375

 
1,129

 
1,462

 
1,012

 
893

 
482

54.0
 %
 
3,966

 
2,632

 
1,334

50.7
 %
Provision for income taxes
319

 
276

 
355

 
229

 
222

 
97

43.7
 %
 
950

 
625

 
325

52.0
 %
Net earnings attributable to common shareholders
$
1,056

 
$
853

 
$
1,107

 
$
783

 
$
671

 
$
385

57.4
 %
 
$
3,016

 
$
2,007

 
$
1,009

50.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 


3


SYNCHRONY FINANCIAL
 
 
 
 
 
 
 
 
 
 
 
 
STATEMENTS OF FINANCIAL POSITION
 
 
 
 
 
 
 
 
 
 
(unaudited, $ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
 
 
 
Sep 30,
2019
 
Jun 30,
2019
 
Mar 31,
2019
 
Dec 31,
2018
 
Sep 30,
2018
 
Sep 30, 2019 vs. Sep 30, 2018
Assets
 
 
 
 
 
 
 
 
 
 
 
 
Cash and equivalents
$
11,461

 
$
11,755

 
$
12,963

 
$
9,396

 
$
12,068

 
$
(607
)
(5.0
)%
Debt securities
4,584

 
6,147

 
5,506

 
6,062

 
7,281

 
(2,697
)
(37.0
)%
Loan receivables:
 
 
 
 
 
 
 
 
 
 
 
 
Unsecuritized loans held for investment
56,220

 
55,178

 
54,907

 
64,969

 
59,868

 
(3,648
)
(6.1
)%
Restricted loans of consolidated securitization entities
26,987

 
26,618

 
25,498

 
28,170

 
27,653

 
(666
)
(2.4
)%
Total loan receivables
83,207

 
81,796

 
80,405

 
93,139

 
87,521

 
(4,314
)
(4.9
)%
Less: Allowance for loan losses
(5,607
)
 
(5,809
)
 
(5,942
)
 
(6,427
)
 
(6,223
)
 
616

(9.9
)%
Loan receivables, net
77,600

 
75,987

 
74,463

 
86,712

 
81,298

 
(3,698
)
(4.5
)%
Loan receivables held for sale
8,182

 
8,096

 
8,052

 
—

 
—

 
8,182

NM

Goodwill
1,078

 
1,078

 
1,076

 
1,024

 
1,024

 
54

5.3
 %
Intangible assets, net
1,177

 
1,215

 
1,259

 
1,137

 
1,105

 
72

6.5
 %
Other assets
1,861

 
2,110

 
2,065

 
2,461

 
1,769

 
92

5.2
 %
Total assets
$
105,943

 
$
106,388

 
$
105,384

 
$
106,792

 
$
104,545

 
$
1,398

1.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and Equity
 
 
 
 
 
 
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposit accounts
$
65,677

 
$
65,382

 
$
63,787

 
$
63,738

 
$
62,030

 
$
3,647

5.9
 %
Non-interest-bearing deposit accounts
295

 
263

 
273

 
281

 
287

 
8

2.8
 %
Total deposits
65,972

 
65,645

 
64,060

 
64,019

 
62,317

 
3,655

5.9
 %
Borrowings:
 
 
 
 
 
 
 
 
 
 
 
 
Borrowings of consolidated securitization entities
10,912

 
11,941

 
12,091

 
14,439

 
14,187

 
(3,275
)
(23.1
)%
Senior unsecured notes
9,451

 
9,303

 
9,800

 
9,557

 
9,554

 
(103
)
(1.1
)%
Total borrowings
20,363

 
21,244

 
21,891

 
23,996

 
23,741

 
(3,378
)
(14.2
)%
Accrued expenses and other liabilities
4,488

 
4,765

 
4,724

 
4,099

 
4,491

 
(3
)
(0.1
)%
Total liabilities
90,823

 
91,654

 
90,675

 
92,114

 
90,549

 
274

0.3
 %
Equity:
 
 
 
 
 
 
 
 
 
 
 
 
Common stock
1

 
1

 
1

 
1

 
1

 
—

—
 %
Additional paid-in capital
9,520

 
9,500

 
9,489

 
9,482

 
9,470

 
50

0.5
 %
Retained earnings
11,533

 
10,627

 
9,939

 
8,986

 
8,355

 
3,178

38.0
 %
Accumulated other comprehensive income:
(44
)
 
(43
)
 
(56
)
 
(62
)
 
(99
)
 
55

(55.6
)%
Treasury Stock
(5,890
)
 
(5,351
)
 
(4,664
)
 
(3,729
)
 
(3,731
)
 
(2,159
)
57.9
 %
Total equity
15,120

 
14,734

 
14,709

 
14,678

 
13,996

 
1,124

8.0
 %
Total liabilities and equity
$
105,943

 
$
106,388

 
$
105,384

 
$
106,792

 
$
104,545

 
$
1,398

1.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 

4


SYNCHRONY FINANCIAL
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AVERAGE BALANCES, NET INTEREST INCOME AND NET INTEREST MARGIN
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(unaudited, $ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
Sep 30, 2019
 
Jun 30, 2019
 
Mar 31, 2019
 
Dec 31, 2018
 
Sep 30, 2018
 
 
 
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
$
10,947

 
$
59

 
2.14
%
 
$
10,989

 
$
66

 
2.41
%
 
$
11,033

 
$
65

 
2.39
%
 
$
10,856

 
$
62

 
2.27
%
 
$
7,901

 
$
39

 
1.96
%
Securities available for sale
5,389

 
32

 
2.36
%
 
6,010

 
36

 
2.40
%
 
5,640

 
34

 
2.44
%
 
6,837

 
40

 
2.32
%
 
7,022

 
38

 
2.15
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loan receivables:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit cards, including held for sale
87,156

 
4,807

 
21.88
%
 
85,488

 
4,557

 
21.38
%
 
86,768

 
4,611

 
21.55
%
 
86,131

 
4,695

 
21.63
%
 
83,609

 
4,538

 
21.53
%
Consumer installment loans
2,022

 
48

 
9.42
%
 
1,924

 
44

 
9.17
%
 
1,844

 
42

 
9.24
%
 
1,815

 
42

 
9.18
%
 
1,753

 
41

 
9.28
%
Commercial credit products
1,329

 
35

 
10.45
%
 
1,330

 
34

 
10.25
%
 
1,252

 
34

 
11.01
%
 
1,344

 
37

 
10.92
%
 
1,355

 
37

 
10.83
%
Other
49

 
—

 
—
%
 
50

 
1

 
NM

 
39

 
—

 
—
%
 
50

 
—

 
—
%
 
66

 
1

 
NM

Total loan receivables, including held for sale
90,556

 
4,890

 
21.42
%
 
88,792

 
4,636

 
20.94
%
 
89,903

 
4,687

 
21.14
%
 
89,340

 
4,774

 
21.20
%
 
86,783

 
4,617

 
21.11
%
Total interest-earning assets
106,892

 
4,981

 
18.49
%
 
105,791

 
4,738

 
17.96
%
 
106,576

 
4,786

 
18.21
%
 
107,033

 
4,876

 
18.07
%
 
101,706

 
4,694

 
18.31
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
1,374

 
 
 
 
 
1,271

 
 
 
 
 
1,335

 
 
 
 
 
1,320

 
 
 
 
 
1,217

 
 
 
 
Allowance for loan losses
(5,773
)
 
 
 
 
 
(5,911
)
 
 
 
 
 
(6,341
)
 
 
 
 
 
(6,259
)
 
 
 
 
 
(5,956
)
 
 
 
 
Other assets
3,920

 
 
 
 
 
3,752

 
 
 
 
 
3,729

 
 
 
 
 
3,688

 
 
 
 
 
3,482

 
 
 
 
Total non-interest-earning assets
(479
)
 
 
 
 
 
(888
)
 
 
 
 
 
(1,277
)
 
 
 
 
 
(1,251
)
 
 
 
 
 
(1,257
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
106,413

 
 
 
 
 
$
104,903

 
 
 
 
 
$
105,299

 
 
 
 
 
$
105,782

 
 
 
 
 
$
100,449

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposit accounts
$
65,615

 
$
411

 
2.49
%
 
$
64,226

 
$
397

 
2.48
%
 
$
63,776

 
$
375

 
2.38
%
 
$
62,999

 
$
350

 
2.20
%
 
$
60,123

 
$
314

 
2.07
%
Borrowings of consolidated securitization entities
11,770

 
88

 
2.97
%
 
11,785

 
90

 
3.06
%
 
13,407

 
100

 
3.02
%
 
14,223

 
104

 
2.90
%
 
12,306

 
86

 
2.77
%
Senior unsecured notes
9,347

 
93

 
3.95
%
 
9,543

 
96

 
4.03
%
 
8,892

 
85

 
3.88
%
 
9,554

 
89

 
3.70
%
 
9,552

 
88

 
3.66
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total interest-bearing liabilities
86,732

 
592

 
2.71
%
 
85,554

 
583

 
2.73
%
 
86,075

 
560

 
2.64
%
 
86,776

 
543

 
2.48
%
 
81,981

 
488

 
2.36
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest-bearing liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest-bearing deposit accounts
283

 
 
 
 
 
271

 
 
 
 
 
286

 
 
 
 
 
284

 
 
 
 
 
275

 
 
 
 
Other liabilities
4,570

 
 
 
 
 
4,260

 
 
 
 
 
4,148

 
 
 
 
 
4,283

 
 
 
 
 
3,772

 
 
 
 
Total non-interest-bearing liabilities
4,853

 
 
 
 
 
4,531

 
 
 
 
 
4,434

 
 
 
 
 
4,567

 
 
 
 
 
4,047

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities
91,585

 
 
 
 
 
90,085

 
 
 
 
 
90,509

 
 
 
 
 
91,343

 
 
 
 
 
86,028

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total equity
14,828

 
 
 
 
 
14,818

 
 
 
 
 
14,790

 
 
 
 
 
14,439

 
 
 
 
 
14,421

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities and equity
$
106,413

 
 
 
 
 
$
104,903

 
 
 
 
 
$
105,299

 
 
 
 
 
$
105,782

 
 
 
 
 
$
100,449

 
 
 
 
Net interest income
 
 
$
4,389

 
 
 
 
 
$
4,155

 
 
 
 
 
$
4,226

 
 
 
 
 
$
4,333

 
 
 
 
 
$
4,206

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate spread(1)
 
 
 
 
15.78
%
 
 
 
 
 
15.23
%
 
 
 
 
 
15.57
%
 
 
 
 
 
15.59
%
 
 
 
 
 
15.95
%
Net interest margin(2)
 
 
 
 
16.29
%
 
 
 
 
 
15.75
%
 
 
 
 
 
16.08
%
 
 
 
 
 
16.06
%
 
 
 
 
 
16.41
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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
Sep 30, 2019
 
Nine Months Ended
Sep 30, 2018
 
 
 
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
$
10,989

 
$
190

 
2.31
%
 
$
11,128

 
$
145

 
1.74
%
Securities available for sale
5,679

 
102

 
2.40
%
 
6,475

 
97

 
2.00
%
 
 
 
 
 
 
 
 
 
 
 
 
Loan receivables:
 
 
 
 
 
 
 
 
 
 
 
Credit cards, including held for sale
86,471

 
13,975

 
21.61
%
 
78,227

 
12,647

 
21.62
%
Consumer installment loans
1,931

 
134

 
9.28
%
 
1,658

 
114

 
9.19
%
Commercial credit products
1,304

 
103

 
10.56
%
 
1,329

 
107

 
10.76
%
Other
46

 
1

 
2.91
%
 
56

 
2

 
4.77
%
Total loan receivables, including held for sale
89,752

 
14,213

 
21.17
%
 
81,270

 
12,870

 
21.17
%
Total interest-earning assets
106,420

 
14,505

 
18.22
%
 
98,873

 
13,112

 
17.73
%
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
1,327

 
 
 
 
 
1,192

 
 
 
 
Allowance for loan losses
(6,006
)
 
 
 
 
 
(5,779
)
 
 
 
 
Other assets
3,801

 
 
 
 
 
3,188

 
 
 
 
Total non-interest-earning assets
(878
)
 
 
 
 
 
(1,399
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
105,542

 
 
 
 
 
$
97,474

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposit accounts
$
64,546

 
$
1,183

 
2.45
%
 
$
57,941

 
$
836

 
1.93
%
Borrowings of consolidated securitization entities
12,315

 
278

 
3.02
%
 
12,178

 
240

 
2.63
%
Senior unsecured notes
9,262

 
274

 
3.96
%
 
9,156

 
251

 
3.67
%
Total interest-bearing liabilities
86,123

 
1,735

 
2.69
%
 
79,275

 
1,327

 
2.24
%
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest-bearing liabilities
 
 
 
 
 
 
 
 
 
 
 
Non-interest-bearing deposit accounts
280

 
 
 
 
 
282

 
 
 
 
Other liabilities
4,327

 
 
 
 
 
3,548

 
 
 
 
Total non-interest-bearing liabilities
4,607

 
 
 
 
 
3,830

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities
90,730

 
 
 
 
 
83,105

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
 
 
 
 
Total equity
14,812

 
 
 
 
 
14,369

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities and equity
$
105,542

 
 
 
 
 
$
97,474

 
 
 
 
Net interest income
 
 
$
12,770

 
 
 
 
 
$
11,785

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate spread(1)
 
 
 
 
15.53
%
 
 
 
 
 
15.49
%
Net interest margin(2)
 
 
 
 
16.04
%
 
 
 
 
 
15.94
%
 
 
 
 
 
 
 
 
 
 
 
 
(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.



6


SYNCHRONY FINANCIAL
 
 
 
 
 
 
 
 
 
 
BALANCE SHEET STATISTICS
 
 
 
 
 
 
 
 
 
 
 
 
(unaudited, $ in millions, except per share statistics)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
 
 
 
Sep 30,
2019
 
Jun 30,
2019
 
Mar 31,
2019
 
Dec 31,
2018
 
Sep 30,
2018
 
Sep 30, 2019 vs.
Sep 30, 2018
BALANCE SHEET STATISTICS
 
 
 
 
 
 
 
 
 
 
 
 
Total common equity
$
15,120

 
$
14,734

 
$
14,709

 
$
14,678

 
$
13,996

 
$
1,124

8.0
%
Total common equity as a % of total assets
14.27
%
 
13.85
%
 
13.96
%
 
13.74
%
 
13.39
%
 

0.88
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Tangible assets
$
103,688

 
$
104,095

 
$
103,049

 
$
104,631

 
$
102,416

 
$
1,272

1.2
%
Tangible common equity(1)
$
12,865

 
$
12,441

 
$
12,374

 
$
12,517

 
$
11,867

 
$
998

8.4
%
Tangible common equity as a % of tangible assets(1)
12.41
%
 
11.95
%
 
12.01
%
 
11.96
%
 
11.59
%
 

0.82
%
Tangible common equity per share(1)
$
19.68

 
$
18.60

 
$
17.96

 
$
17.41

 
$
16.51

 
$
3.17

19.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
REGULATORY CAPITAL RATIOS(2)
 
 
 
 
 
 
 
 
 
 
 
 

Basel III Fully Phased-in
 
 
 
Total risk-based capital ratio(3)
15.8
%
 
15.6
%
 
15.8
%
 
15.3
%
 
15.5
%
 
 
 
Tier 1 risk-based capital ratio(4)
14.5
%
 
14.3
%
 
14.5
%
 
14.0
%
 
14.2
%
 
 
 
Tier 1 leverage ratio(5)
12.6
%
 
12.4
%
 
12.3
%
 
12.3
%
 
12.3
%
 
 
 
Common equity Tier 1 capital ratio
14.5
%
 
14.3
%
 
14.5
%
 
14.0
%
 
14.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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, 2019 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.



 
 
 
 
 
 
 
 
 
 
 
 
 

7


SYNCHRONY FINANCIAL
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PLATFORM RESULTS
 
 
 
 
 
 
 
 
 
 
 
 
(unaudited, $ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
 
 
 
Nine Months Ended
 
 
 
 
Sep 30,
2019
 
Jun 30,
2019
 
Mar 31,
2019
 
Dec 31,
2018
 
Sep 30,
2018
 
3Q'19 vs. 3Q'18
 
Sep 30,
2019
 
Sep 30,
2018
 
YTD'19 vs. YTD'18
RETAIL CARD(1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase volume(2)(3)
$
29,282

 
$
29,530

 
$
24,660

 
$
31,755

 
$
27,863

 
$
1,419

5.1
 %
 
$
83,472

 
$
75,930

 
$
7,542

9.9
 %
Period-end loan receivables
$
52,697

 
$
52,307

 
$
51,572

 
$
63,827

 
$
59,139

 
$
(6,442
)
(10.9
)%
 
$
52,697

 
$
59,139

 
$
(6,442
)
(10.9
)%
Average loan receivables, including held for sale
$
60,660

 
$
59,861

 
$
60,964

 
$
60,604

 
$
58,964

 
$
1,696

2.9
 %
 
$
60,494

 
$
54,101

 
$
6,393

11.8
 %
Average active accounts (in thousands)(3)(4)
58,082

 
57,212

 
58,632

 
58,962

 
57,459

 
623

1.1
 %
 
58,156

 
54,717

 
3,439

6.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and fees on loans
$
3,570

 
$
3,390

 
$
3,454

 
$
3,502

 
$
3,383

 
$
187

5.5
 %
 
$
10,414

 
$
9,313

 
$
1,101

11.8
 %
Other income
$
65

 
$
59

 
$
76

 
$
59

 
$
57

 
$
8

14.0
 %
 
$
200

 
$
180

 
$
20

11.1
 %
Retailer share arrangements
$
(998
)
 
$
(836
)
 
$
(940
)
 
$
(825
)
 
$
(844
)
 
$
(154
)
18.2
 %
 
$
(2,774
)
 
$
(2,189
)
 
$
(585
)
26.7
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PAYMENT SOLUTIONS(1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase volume(2)
$
6,281

 
$
5,948

 
$
5,249

 
$
6,035

 
$
6,007

 
$
274

4.6
 %
 
$
17,478

 
$
16,773

 
$
705

4.2
 %
Period-end loan receivables
$
20,478

 
$
19,766

 
$
19,379

 
$
19,815

 
$
19,064

 
$
1,414

7.4
 %
 
$
20,478

 
$
19,064

 
$
1,414

7.4
 %
Average loan receivables, including held for sale
$
20,051

 
$
19,409

 
$
19,497

 
$
19,333

 
$
18,659

 
$
1,392

7.5
 %
 
$
19,654

 
$
18,231

 
$
1,423

7.8
 %
Average active accounts (in thousands)(4)
12,384

 
12,227

 
12,406

 
12,350

 
12,062

 
322

2.7
 %
 
12,354

 
11,992

 
362

3.0
 %
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and fees on loans
$
721

 
$
685

 
$
686

 
$
708

 
$
683

 
$
38

5.6
 %
 
$
2,092

 
$
1,970

 
$
122

6.2
 %
Other income
$
(1
)
 
$
11

 
$
1

 
$
(2
)
 
$
(2
)
 
$
1

(50.0
)%
 
$
11

 
$
(6
)
 
$
17

NM

Retailer share arrangements
$
(15
)
 
$
(21
)
 
$
(12
)
 
$
(25
)
 
$
(24
)
 
$
9

(37.5
)%
 
$
(48
)
 
$
(48
)
 
$
—

—
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CARECREDIT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase volume(2)
$
2,832

 
$
2,813

 
$
2,604

 
$
2,530

 
$
2,573

 
$
259

10.1
 %
 
$
8,249

 
$
7,634

 
$
615

8.1
 %
Period-end loan receivables
$
10,032

 
$
9,723

 
$
9,454

 
$
9,497

 
$
9,318

 
$
714

7.7
 %
 
$
10,032

 
$
9,318

 
$
714

7.7
 %
Average loan receivables, including held for sale
$
9,845

 
$
9,522

 
$
9,442

 
$
9,403

 
$
9,160

 
$
685

7.5
 %
 
$
9,604

 
$
8,938

 
$
666

7.5
 %
Average active accounts (in thousands)(4)
6,229

 
6,086

 
6,094

 
6,070

 
5,961

 
268

4.5
 %
 
6,143

 
5,885

 
258

4.4
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and fees on loans
$
599

 
$
561

 
$
547

 
$
564

 
$
551

 
$
48

8.7
 %
 
$
1,707

 
$
1,587

 
$
120

7.6
 %
Other income
$
21

 
$
20

 
$
15

 
$
7

 
$
8

 
$
13

162.5
 %
 
$
56

 
$
27

 
$
29

107.4
 %
Retailer share arrangements
$
(3
)
 
$
(2
)
 
$
(2
)
 
$
(5
)
 
$
(3
)
 
$
—

—
 %
 
$
(7
)
 
$
(7
)
 
$
—

—
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL SYF
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase volume(2)(3)
$
38,395

 
$
38,291

 
$
32,513

 
$
40,320

 
$
36,443

 
$
1,952

5.4
 %
 
$
109,199

 
$
100,337

 
$
8,862

8.8
 %
Period-end loan receivables
$
83,207

 
$
81,796

 
$
80,405

 
$
93,139

 
$
87,521

 
$
(4,314
)
(4.9
)%
 
$
83,207

 
$
87,521

 
$
(4,314
)
(4.9
)%
Average loan receivables, including held for sale
$
90,556

 
$
88,792

 
$
89,903

 
$
89,340

 
$
86,783

 
$
3,773

4.3
 %
 
$
89,752

 
$
81,270

 
$
8,482

10.4
 %
Average active accounts (in thousands)(3)(4)
76,695

 
75,525

 
77,132

 
77,382

 
75,482

 
1,213

1.6
 %
 
76,653

 
72,594

 
4,059

5.6
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and fees on loans
$
4,890

 
$
4,636

 
$
4,687

 
$
4,774

 
$
4,617

 
$
273

5.9
 %
 
$
14,213

 
$
12,870

 
$
1,343

10.4
 %
Other income
$
85

 
$
90

 
$
92

 
$
64

 
$
63

 
$
22

34.9
 %
 
$
267

 
$
201

 
$
66

32.8
 %
Retailer share arrangements
$
(1,016
)
 
$
(859
)
 
$
(954
)
 
$
(855
)
 
$
(871
)
 
$
(145
)
16.6
 %
 
$
(2,829
)
 
$
(2,244
)
 
$
(585
)
26.1
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Beginning in 1Q 2019, our Oil and Gas retail credit programs are now included in our Payment Solutions sales platform. Prior period financial and operating metrics for Retail Card and Payment Solutions have been recast to reflect the current period presentation.
 
 
 
 
 
 
 
(2) 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.
 
 
 
 
 
 
 
(3) Includes activity and balances associated with loan receivables held for sale.
 
 
 
 
 
 
 
(4) 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,
2019
 
Jun 30,
2019
 
Mar 31,
2019
 
Dec 31,
2018
 
Sep 30,
2018
COMMON EQUITY MEASURES
 
 
 
 
 
 
 
 
 
GAAP Total common equity
$
15,120

 
$
14,734

 
$
14,709

 
$
14,678

 
$
13,996

Less: Goodwill
(1,078
)
 
(1,078
)
 
(1,076
)
 
(1,024
)
 
(1,024
)
Less: Intangible assets, net
(1,177
)
 
(1,215
)
 
(1,259
)
 
(1,137
)
 
(1,105
)
Tangible common equity
$
12,865

 
$
12,441

 
$
12,374

 
$
12,517

 
$
11,867

 
 
 
 
 
 
 
 
 
 
Adjustments for certain deferred tax liabilities and certain items in accumulated comprehensive income (loss)
290

 
283

 
287

 
284

 
311

Basel III - Common equity Tier 1 (fully phased-in)
$
13,155

 
$
12,724

 
$
12,661

 
$
12,801

 
$
12,178

 
 
 
 
 
 
 
 
 
 
RISK-BASED CAPITAL
 
 
 
 
 
 
 
 
 
Common equity Tier 1
$
13,155

 
$
12,724

 
$
12,661

 
$
12,801

 
$
12,178

Add: Allowance for loan losses includible in risk-based capital
1,190

 
1,169

 
1,152

 
1,212

 
1,137

Risk-based capital
$
14,345

 
$
13,893

 
$
13,813

 
$
14,013

 
$
13,315

 
 
 
 
 
 
 
 
 
 
ASSET MEASURES
 
 
 
 
 
 
 
 
 
Total average assets
$
106,413

 
$
104,903

 
$
105,299

 
$
105,782

 
$
100,449

Adjustments for:
 
 
 
 
 
 
 
 
 
Disallowed goodwill and other disallowed intangible assets
(net of related deferred tax liabilities) and other
(1,975
)
 
(2,003
)
 
(2,039
)
 
(1,845
)
 
(1,836
)
Total assets for leverage purposes
$
104,438

 
$
102,900

 
$
103,260

 
$
103,937

 
$
98,613

 
 
 
 
 
 
 
 
 
 
Risk-weighted assets - Basel III (fully phased-in)
$
90,772

 
$
88,890

 
$
87,331

 
$
91,742

 
$
85,941

 
 
 


 


 


 


CORE LOAN RECEIVABLES
 
 
 
 
 
 
 
 
 
Loan receivables
$
83,207

 
$
81,796

 
$
80,405

 
$
93,139

 
$
87,521

Less: Walmart receivables
(112
)
 
(431
)
 
(692
)
 
(9,519
)
 
(9,217
)
Core Loan receivables
$
83,095

 
$
81,365

 
$
79,713

 
$
83,620

 
$
78,304

 
 
 
 
 
 
 
 
 
 
Retail Card Loan receivables(2)
$
52,697

 
$
52,307

 
$
51,572

 
$
63,827

 
$
59,139

Less: Walmart receivables
(112
)
 
(431
)
 
(692
)
 
(9,519
)
 
(9,217
)
Core Retail Card Loan receivables
$
52,585

 
$
51,876

 
$
50,880

 
$
54,308

 
$
49,922

 
 
 
 
 
 
 
 
 
 
TANGIBLE COMMON EQUITY PER SHARE
 
 
 
 
 
 
 
 
 
GAAP book value per share
$
23.13

 
$
22.03

 
$
21.35

 
$
20.42

 
$
19.47

Less: Goodwill
(1.65
)
 
(1.61
)
 
(1.56
)
 
(1.42
)
 
(1.42
)
Less: Intangible assets, net
(1.80
)
 
(1.82
)
 
(1.83
)
 
(1.59
)
 
(1.54
)
Tangible common equity per share
$
19.68

 
$
18.60

 
$
17.96

 
$
17.41

 
$
16.51

 
 
 
 
 
 
 
 
 
 
 
 
(1) Regulatory measures at September 30, 2019 are presented on an estimated basis.
(2) Beginning in 1Q 2019, our Oil and Gas retail credit programs are now included in our Payment Solutions sales platform. Prior period financial and operating metrics for Retail Card and Payment Solutions have been recast to reflect the current period presentation.
 
 

9