Exhibit 99.2


SYNCHRONY FINANCIAL
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL SUMMARY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(unaudited, in millions, except per share statistics)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
 
 
Twelve Months Ended
 
 
 
 
Dec 31,
2019
 
Sep 30,
2019
 
Jun 30,
2019
 
Mar 31,
2019
 
Dec 31,
2018
 
4Q'19 vs. 4Q'18
 
Dec 31,
2019
 
Dec 31,
2018
 
YTD'19 vs. YTD'18
EARNINGS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income
$
4,029

 
$
4,389

 
$
4,155

 
$
4,226

 
$
4,333

 
$
(304
)
(7.0
)%
 
$
16,799

 
$
16,118

 
$
681

4.2
 %
Retailer share arrangements
(1,029
)
 
(1,016
)
 
(859
)
 
(954
)
 
(855
)
 
(174
)
20.4
 %
 
(3,858
)
 
(3,099
)
 
(759
)
24.5
 %
Provision for loan losses
1,104

 
1,019

 
1,198

 
859

 
1,452

 
(348
)
(24.0
)%
 
4,180

 
5,545

 
(1,365
)
(24.6
)%
Net interest income, after retailer share arrangements and provision for loan losses
1,896

 
2,354

 
2,098

 
2,413

 
2,026

 
(130
)
(6.4
)%
 
8,761

 
7,474

 
1,287

17.2
 %
Other income
104

 
85

 
90

 
92

 
64

 
40

62.5
 %
 
371

 
265

 
106

40.0
 %
Other expense
1,079

 
1,064

 
1,059

 
1,043

 
1,078

 
1

0.1
 %
 
4,245

 
4,095

 
150

3.7
 %
Earnings before provision for income taxes
921

 
1,375

 
1,129

 
1,462

 
1,012

 
(91
)
(9.0
)%
 
4,887

 
3,644

 
1,243

34.1
 %
Provision for income taxes
190

 
319

 
276

 
355

 
229

 
(39
)
(17.0
)%
 
1,140

 
854

 
286

33.5
 %
Net earnings
$
731

 
$
1,056

 
$
853

 
$
1,107

 
$
783

 
$
(52
)
(6.6
)%
 
$
3,747

 
$
2,790

 
$
957

34.3
 %
Net earnings attributable to common stockholders
$
731

 
$
1,056

 
$
853

 
$
1,107

 
$
783

 
$
(52
)
(6.6
)%
 
$
3,747


$
2,790


$
957

34.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
COMMON SHARE STATISTICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic EPS
$
1.15

 
$
1.60

 
$
1.25

 
$
1.57

 
$
1.09

 
$
0.06

5.5
 %
 
$
5.59

 
$
3.76

 
$
1.83

48.7
 %
Diluted EPS
$
1.15

 
$
1.60

 
$
1.24

 
$
1.56

 
$
1.09

 
$
0.06

5.5
 %
 
$
5.56

 
$
3.74

 
$
1.82

48.7
 %
Dividend declared per share
$
0.22

 
$
0.22

 
$
0.21

 
$
0.21

 
$
0.21

 
$
0.01

4.8
 %
 
$
0.86

 
$
0.72

 
$
0.14

19.4
 %
Common stock price
$
36.01

 
$
34.09

 
$
34.67

 
$
31.90

 
$
23.46

 
$
12.55

53.5
 %
 
$
36.01

 
$
23.46

 
$
12.55

53.5
 %
Book value per share
$
23.31

 
$
23.13

 
$
22.03

 
$
21.35

 
$
20.42

 
$
2.89

14.2
 %
 
$
23.31

 
$
20.42

 
$
2.89

14.2
 %
Tangible common equity per share(1)
$
19.50

 
$
19.68

 
$
18.60

 
$
17.96

 
$
17.41

 
$
2.09

12.0
 %
 
$
19.50

 
$
17.41

 
$
2.09

12.0
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning common shares outstanding
653.7

 
668.9

 
688.8

 
718.8

 
718.7

 
(65.0
)
(9.0
)%
 
718.8

 
770.5

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

 
—

 
—

 
—

 
—

 
—

—
 %
 
—

 
—

 
—

—
 %
Stock-based compensation
0.6

 
0.4

 
1.2

 
0.9

 
0.1

 
0.5

NM

 
3.1

 
3.0

 
0.1

3.3
 %
Shares repurchased
(38.4
)
 
(15.6
)
 
(21.1
)
 
(30.9
)
 
—

 
(38.4
)
NM

 
(106.0
)
 
(54.7
)
 
(51.3
)
93.8
 %
Ending common shares outstanding
615.9

 
653.7

 
668.9

 
688.8

 
718.8

 
(102.9
)
(14.3
)%
 
615.9

 
718.8

 
(102.9
)
(14.3
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding
633.7

 
658.3

 
683.6

 
706.3

 
718.7

 
(85.0
)
(11.8
)%
 
670.2

 
742.3

 
(72.1
)
(9.7
)%
Weighted average common shares outstanding (fully diluted)
637.7

 
661.7

 
686.5

 
708.9

 
720.9

 
(83.2
)
(11.5
)%
 
673.5

 
746.9

 
(73.4
)
(9.8
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Tangible Common Equity ("TCE") is a non-GAAP measure. For corresponding reconciliation of TCE to a GAAP financial measure, see Reconciliation of Non-GAAP Measures and Calculations of Regulatory Measures.


1


SYNCHRONY FINANCIAL
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SELECTED METRICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(unaudited, $ in millions, except account data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
 
 
 
Twelve Months Ended
 
 
 
 
Dec 31,
2019
 
Sep 30,
2019
 
Jun 30,
2019
 
Mar 31,
2019
 
Dec 31,
2018
 
4Q'19 vs. 4Q'18
 
Dec 31,
2019
 
Dec 31,
2018
 
YTD'19 vs. YTD'18
PERFORMANCE METRICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on assets(1)
2.7
%
 
3.9
%
 
3.3
%
 
4.3
%
 
2.9
%
 


(0.2
)%
 
3.5
%
 
2.8
%
 


0.7
 %
Return on equity(2)
19.0
%
 
28.3
%
 
23.1
%
 
30.4
%
 
21.5
%
 


(2.5
)%
 
25.1
%
 
19.4
%
 


5.7
 %
Return on tangible common equity(3)
23.0
%
 
33.4
%
 
27.4
%
 
35.8
%
 
25.2
%
 


(2.2
)%
 
29.9
%
 
22.4
%
 


7.5
 %
Net interest margin(4)
15.01
%
 
16.29
%
 
15.75
%
 
16.08
%
 
16.06
%
 


(1.05
)%
 
15.78
%
 
15.97
%
 


(0.19
)%
Efficiency ratio(5)
34.8
%
 
30.8
%
 
31.3
%
 
31.0
%
 
30.4
%
 


4.4
 %
 
31.9
%
 
30.8
%
 


1.1
 %
Other expense as a % of average loan receivables, including held for sale
5.01
%
 
4.66
%
 
4.78
%
 
4.71
%
 
4.79
%
 


0.22
 %
 
4.79
%
 
4.92
%
 


(0.13
)%
Effective income tax rate
20.6
%
 
23.2
%
 
24.4
%
 
24.3
%
 
22.6
%
 


(2.0
)%
 
23.3
%
 
23.4
%
 


(0.1
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CREDIT QUALITY METRICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net charge-offs as a % of average loan receivables, including held for sale
5.15
%
 
5.35
%
 
6.01
%
 
6.06
%
 
5.54
%
 


(0.39
)%
 
5.65
%
 
5.63
%
 


0.02
 %
30+ days past due as a % of period-end loan receivables(6)
4.44
%
 
4.47
%
 
4.43
%
 
4.92
%
 
4.76
%
 


(0.32
)%
 
4.44
%
 
4.76
%
 


(0.32
)%
90+ days past due as a % of period-end loan receivables(6)
2.15
%
 
2.07
%
 
2.16
%
 
2.51
%
 
2.29
%
 


(0.14
)%
 
2.15
%
 
2.29
%
 


(0.14
)%
Net charge-offs
$
1,109

 
$
1,221

 
$
1,331

 
$
1,344

 
$
1,248

 
$
(139
)
(11.1
)%
 
$
5,005

 
$
4,692

 
$
313

6.7
 %
Loan receivables delinquent over 30 days(6)
$
3,874

 
$
3,723

 
$
3,625

 
$
3,957

 
$
4,430

 
$
(556
)
(12.6
)%
 
$
3,874

 
$
4,430

 
$
(556
)
(12.6
)%
Loan receivables delinquent over 90 days(6)
$
1,877

 
$
1,723

 
$
1,768

 
$
2,019

 
$
2,135

 
$
(258
)
(12.1
)%
 
$
1,877

 
$
2,135

 
$
(258
)
(12.1
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses (period-end)
$
5,602

 
$
5,607

 
$
5,809

 
$
5,942

 
$
6,427

 
$
(825
)
(12.8
)%
 
$
5,602

 
$
6,427

 
$
(825
)
(12.8
)%
Allowance coverage ratio(7)
6.42
%
 
6.74
%
 
7.10
%
 
7.39
%
 
6.90
%
 


(0.48
)%
 
6.42
%
 
6.90
%
 


(0.48
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BUSINESS METRICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase volume(8)(9)
$
40,212

 
$
38,395

 
$
38,291

 
$
32,513

 
$
40,320

 
$
(108
)
(0.3
)%
 
$
149,411

 
$
140,657

 
$
8,754

6.2
 %
Period-end loan receivables
$
87,215

 
$
83,207

 
$
81,796

 
$
80,405

 
$
93,139

 
$
(5,924
)
(6.4
)%
 
$
87,215

 
$
93,139

 
$
(5,924
)
(6.4
)%
Credit cards
$
84,606

 
$
79,788

 
$
78,446

 
$
77,251

 
$
89,994

 
$
(5,388
)
(6.0
)%
 
$
84,606

 
$
89,994

 
$
(5,388
)
(6.0
)%
Consumer installment loans
$
1,347

 
$
2,050

 
$
1,983

 
$
1,860

 
$
1,845

 
$
(498
)
(27.0
)%
 
$
1,347

 
$
1,845

 
$
(498
)
(27.0
)%
Commercial credit products
$
1,223

 
$
1,317

 
$
1,328

 
$
1,256

 
$
1,260

 
$
(37
)
(2.9
)%
 
$
1,223

 
$
1,260

 
$
(37
)
(2.9
)%
Other
$
39

 
$
52

 
$
39

 
$
38

 
$
40

 
$
(1
)
(2.5
)%
 
$
39

 
$
40

 
$
(1
)
(2.5
)%
Average loan receivables, including held for sale
$
85,376

 
$
90,556

 
$
88,792

 
$
89,903

 
$
89,340

 
$
(3,964
)
(4.4
)%
 
$
88,649

 
$
83,304

 
$
5,345

6.4
 %
Period-end active accounts (in thousands)(9)(10)
75,471

 
77,094

 
76,065

 
74,812

 
80,339

 
(4,868
)
(6.1
)%
 
75,471

 
80,339

 
(4,868
)
(6.1
)%
Average active accounts (in thousands)(9)(10)
73,734

 
76,695

 
75,525

 
77,132

 
77,382

 
(3,648
)
(4.7
)%
 
75,721

 
73,847

 
1,874

2.5
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIQUIDITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liquid assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and equivalents
$
12,147

 
$
11,461

 
$
11,755

 
$
12,963

 
$
9,396

 
$
2,751

29.3
 %
 
$
12,147

 
$
9,396

 
$
2,751

29.3
 %
Total liquid assets
$
17,322

 
$
15,201

 
$
16,665

 
$
17,360

 
$
14,822

 
$
2,500

16.9
 %
 
$
17,322

 
$
14,822

 
$
2,500

16.9
 %
Undrawn credit facilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Undrawn credit facilities
$
6,050

 
$
6,500

 
$
7,050

 
$
6,050

 
$
4,375

 
$
1,675

38.3
 %
 
$
6,050

 
$
4,375

 
$
1,675

38.3
 %
Total liquid assets and undrawn credit facilities
$
23,372

 
$
21,701

 
$
23,715

 
$
23,410

 
$
19,197

 
$
4,175

21.7
 %
 
$
23,372

 
$
19,197

 
$
4,175

21.7
 %
Liquid assets % of total assets
16.52
%
 
14.35
%
 
15.66
%
 
16.47
%
 
13.88
%
 


2.64
 %
 
16.52
%
 
13.88
%
 


2.64
 %
Liquid assets including undrawn credit facilities % of total assets
22.30
%
 
20.48
%
 
22.29
%
 
22.21
%
 
17.98
%
 


4.32
 %
 
22.30
%
 
17.98
%
 


4.32
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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
 
 
 
 
Twelve Months Ended
 
 
 
 
Dec 31,
2019
 
Sep 30,
2019
 
Jun 30,
2019
 
Mar 31,
2019
 
Dec 31,
2018
 
4Q'19 vs. 4Q'18
 
Dec 31,
2019
 
Dec 31,
2018
 
YTD'19 vs. YTD'18
Interest income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and fees on loans
$
4,492

 
$
4,890

 
$
4,636

 
$
4,687

 
$
4,774

 
$
(282
)
(5.9
)%
 
$
18,705

 
$
17,644

 
$
1,061

6.0
 %
Interest on cash and investment securities
93

 
91

 
102

 
99

 
102

 
(9
)
(8.8
)%
 
385

 
344

 
41

11.9
 %
Total interest income
4,585

 
4,981

 
4,738

 
4,786

 
4,876

 
(291
)
(6.0
)%
 
19,090

 
17,988

 
1,102

6.1
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest on deposits
383

 
411

 
397

 
375

 
350

 
33

9.4
 %
 
1,566

 
1,186

 
380

32.0
 %
Interest on borrowings of consolidated securitization entities
80

 
88

 
90

 
100

 
104

 
(24
)
(23.1
)%
 
358

 
344

 
14

4.1
 %
Interest on senior unsecured notes
93

 
93

 
96

 
85

 
89

 
4

4.5
 %
 
367

 
340

 
27

7.9
 %
Total interest expense
556

 
592

 
583

 
560

 
543

 
13

2.4
 %
 
2,291

 
1,870

 
421

22.5
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income
4,029

 
4,389

 
4,155

 
4,226

 
4,333

 
(304
)
(7.0
)%
 
16,799

 
16,118

 
681

4.2
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Retailer share arrangements
(1,029
)
 
(1,016
)
 
(859
)
 
(954
)
 
(855
)
 
(174
)
20.4
 %
 
(3,858
)
 
(3,099
)
 
(759
)
24.5
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for loan losses
1,104

 
1,019

 
1,198

 
859

 
1,452

 
(348
)
(24.0
)%
 
4,180

 
5,545

 
(1,365
)
(24.6
)%
Net interest income, after retailer share arrangements and provision for loan losses
1,896

 
2,354

 
2,098

 
2,413

 
2,026

 
(130
)
(6.4
)%
 
8,761

 
7,474

 
1,287

17.2
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interchange revenue
192

 
197

 
194

 
165

 
193

 
(1
)
(0.5
)%
 
748

 
710

 
38

5.4
 %
Debt cancellation fees
64

 
64

 
69

 
68

 
70

 
(6
)
(8.6
)%
 
265

 
267

 
(2
)
(0.7
)%
Loyalty programs
(181
)
 
(203
)
 
(192
)
 
(167
)
 
(208
)
 
27

(13.0
)%
 
(743
)
 
(751
)
 
8

(1.1
)%
Other
29

 
27

 
19

 
26

 
9

 
20

NM

 
101

 
39

 
62

159.0
 %
Total other income
104

 
85

 
90

 
92

 
64

 
40

62.5
 %
 
371

 
265

 
106

40.0
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other expense:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Employee costs
385

 
359

 
358

 
353

 
353

 
32

9.1
 %
 
1,455

 
1,427

 
28

2.0
 %
Professional fees
199

 
205

 
231

 
232

 
231

 
(32
)
(13.9
)%
 
867

 
806

 
61

7.6
 %
Marketing and business development
152

 
139

 
135

 
123

 
166

 
(14
)
(8.4
)%
 
549

 
528

 
21

4.0
 %
Information processing
122

 
127

 
123

 
113

 
118

 
4

3.4
 %
 
485

 
426

 
59

13.8
 %
Other
221

 
234

 
212

 
222

 
210

 
11

5.2
 %
 
889

 
908

 
(19
)
(2.1
)%
Total other expense
1,079

 
1,064

 
1,059

 
1,043

 
1,078

 
1

0.1
 %
 
4,245

 
4,095

 
150

3.7
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings before provision for income taxes
921

 
1,375

 
1,129

 
1,462

 
1,012

 
(91
)
(9.0
)%
 
4,887

 
3,644

 
1,243

34.1
 %
Provision for income taxes
190

 
319

 
276

 
355

 
229

 
(39
)
(17.0
)%
 
1,140

 
854

 
286

33.5
 %
Net earnings
$
731

 
$
1,056

 
$
853

 
$
1,107

 
$
783

 
$
(52
)
(6.6
)%
 
$
3,747

 
$
2,790

 
$
957

34.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net earnings attributable to common stockholders
$
731

 
$
1,056

 
$
853

 
$
1,107

 
$
783

 
$
(52
)
(6.6
)%
 
$
3,747

 
$
2,790

 
$
957

34.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


3


SYNCHRONY FINANCIAL
 
 
 
 
 
 
 
 
 
 
 
 
STATEMENTS OF FINANCIAL POSITION
 
 
 
 
 
 
 
 
 
 
(unaudited, $ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
 
 
 
Dec 31,
2019
 
Sep 30,
2019
 
Jun 30,
2019
 
Mar 31,
2019
 
Dec 31,
2018
 
Dec 31, 2019 vs.
Dec 31, 2018
Assets
 
 
 
 
 
 
 
 
 
 
 
 
Cash and equivalents
$
12,147

 
$
11,461

 
$
11,755

 
$
12,963

 
$
9,396

 
$
2,751

29.3
 %
Debt securities
5,911

 
4,584

 
6,147

 
5,506

 
6,062

 
(151
)
(2.5
)%
Loan receivables:
 
 
 
 
 
 
 
 
 
 
 
 
Unsecuritized loans held for investment
58,398

 
56,220

 
55,178

 
54,907

 
64,969

 
(6,571
)
(10.1
)%
Restricted loans of consolidated securitization entities
28,817

 
26,987

 
26,618

 
25,498

 
28,170

 
647

2.3
 %
Total loan receivables
87,215

 
83,207

 
81,796

 
80,405

 
93,139

 
(5,924
)
(6.4
)%
Less: Allowance for loan losses
(5,602
)
 
(5,607
)
 
(5,809
)
 
(5,942
)
 
(6,427
)
 
825

(12.8
)%
Loan receivables, net
81,613

 
77,600

 
75,987

 
74,463

 
86,712

 
(5,099
)
(5.9
)%
Loan receivables held for sale
725

 
8,182

 
8,096

 
8,052

 
—

 
725

NM

Goodwill
1,078

 
1,078

 
1,078

 
1,076

 
1,024

 
54

5.3
 %
Intangible assets, net
1,265

 
1,177

 
1,215

 
1,259

 
1,137

 
128

11.3
 %
Other assets
2,087

 
1,861

 
2,110

 
2,065

 
2,461

 
(374
)
(15.2
)%
Total assets
$
104,826

 
$
105,943

 
$
106,388

 
$
105,384

 
$
106,792

 
$
(1,966
)
(1.8
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and Equity
 
 
 
 
 
 
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposit accounts
$
64,877

 
$
65,677

 
$
65,382

 
$
63,787

 
$
63,738

 
$
1,139

1.8
 %
Non-interest-bearing deposit accounts
277

 
295

 
263

 
273

 
281

 
(4
)
(1.4
)%
Total deposits
65,154

 
65,972

 
65,645

 
64,060

 
64,019

 
1,135

1.8
 %
Borrowings:
 
 
 
 
 
 
 
 
 
 
 
 
Borrowings of consolidated securitization entities
10,412

 
10,912

 
11,941

 
12,091

 
14,439

 
(4,027
)
(27.9
)%
Senior unsecured notes
9,454

 
9,451

 
9,303

 
9,800

 
9,557

 
(103
)
(1.1
)%
Total borrowings
19,866

 
20,363

 
21,244

 
21,891

 
23,996

 
(4,130
)
(17.2
)%
Accrued expenses and other liabilities
4,718

 
4,488

 
4,765

 
4,724

 
4,099

 
619

15.1
 %
Total liabilities
89,738

 
90,823

 
91,654

 
90,675

 
92,114

 
(2,376
)
(2.6
)%
Equity:
 
 
 
 
 
 
 
 
 
 
 
 
Preferred stock
734

 
—

 
—

 
—

 
—

 
734

NM

Common stock
1

 
1

 
1

 
1

 
1

 
—

—
 %
Additional paid-in capital
9,537

 
9,520

 
9,500

 
9,489

 
9,482

 
55

0.6
 %
Retained earnings
12,117

 
11,533

 
10,627

 
9,939

 
8,986

 
3,131

34.8
 %
Accumulated other comprehensive income:
(58
)
 
(44
)
 
(43
)
 
(56
)
 
(62
)
 
4

(6.5
)%
Treasury stock
(7,243
)
 
(5,890
)
 
(5,351
)
 
(4,664
)
 
(3,729
)
 
(3,514
)
94.2
 %
Total equity
15,088

 
15,120

 
14,734

 
14,709

 
14,678

 
410

2.8
 %
Total liabilities and equity
$
104,826

 
$
105,943

 
$
106,388

 
$
105,384

 
$
106,792

 
$
(1,966
)
(1.8
)%
 
 
 
 
 
 
 
 
 
 
 
 
 


4


SYNCHRONY FINANCIAL
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AVERAGE BALANCES, NET INTEREST INCOME AND NET INTEREST MARGIN
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(unaudited, $ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
Dec 31, 2019
 
Sep 30, 2019
 
Jun 30, 2019
 
Mar 31, 2019
 
Dec 31, 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
$
16,269

 
$
68

 
1.66
%
 
$
10,947

 
$
59

 
2.14
%
 
$
10,989

 
$
66

 
2.41
%
 
$
11,033

 
$
65

 
2.39
%
 
$
10,856

 
$
62

 
2.27
%
Securities available for sale
4,828

 
25

 
2.05
%
 
5,389

 
32

 
2.36
%
 
6,010

 
36

 
2.40
%
 
5,640

 
34

 
2.44
%
 
6,837

 
40

 
2.32
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loan receivables, including held for sale:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit cards
81,960

 
4,409

 
21.34
%
 
87,156

 
4,807

 
21.88
%
 
85,488

 
4,557

 
21.38
%
 
86,768

 
4,611

 
21.55
%
 
86,131

 
4,695

 
21.63
%
Consumer installment loans
2,058

 
48

 
9.25
%
 
2,022

 
48

 
9.42
%
 
1,924

 
44

 
9.17
%
 
1,844

 
42

 
9.24
%
 
1,815

 
42

 
9.18
%
Commercial credit products
1,311

 
34

 
10.29
%
 
1,329

 
35

 
10.45
%
 
1,330

 
34

 
10.25
%
 
1,252

 
34

 
11.01
%
 
1,344

 
37

 
10.92
%
Other
47

 
1

 
NM

 
49

 
—

 
—
%
 
50

 
1

 
NM

 
39

 
—

 
—
%
 
50

 
—

 
—
%
Total loan receivables, including held for sale
85,376

 
4,492

 
20.87
%
 
90,556

 
4,890

 
21.42
%
 
88,792

 
4,636

 
20.94
%
 
89,903

 
4,687

 
21.14
%
 
89,340

 
4,774

 
21.20
%
Total interest-earning assets
106,473

 
4,585

 
17.08
%
 
106,892

 
4,981

 
18.49
%
 
105,791

 
4,738

 
17.96
%
 
106,576

 
4,786

 
18.21
%
 
107,033

 
4,876

 
18.07
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
1,326

 
 
 
 
 
1,374

 
 
 
 
 
1,271

 
 
 
 
 
1,335

 
 
 
 
 
1,320

 
 
 
 
Allowance for loan losses
(5,593
)
 
 
 
 
 
(5,773
)
 
 
 
 
 
(5,911
)
 
 
 
 
 
(6,341
)
 
 
 
 
 
(6,259
)
 
 
 
 
Other assets
3,872

 
 
 
 
 
3,920

 
 
 
 
 
3,752

 
 
 
 
 
3,729

 
 
 
 
 
3,688

 
 
 
 
Total non-interest-earning assets
(395
)
 
 
 
 
 
(479
)
 
 
 
 
 
(888
)
 
 
 
 
 
(1,277
)
 
 
 
 
 
(1,251
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
106,078

 
 
 
 
 
$
106,413

 
 
 
 
 
$
104,903

 
 
 
 
 
$
105,299

 
 
 
 
 
$
105,782

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposit accounts
$
65,380

 
$
383

 
2.32
%
 
$
65,615

 
$
411

 
2.49
%
 
$
64,226

 
$
397

 
2.48
%
 
$
63,776

 
$
375

 
2.38
%
 
$
62,999

 
$
350

 
2.20
%
Borrowings of consolidated securitization entities
10,831

 
80

 
2.93
%
 
11,770

 
88

 
2.97
%
 
11,785

 
90

 
3.06
%
 
13,407

 
100

 
3.02
%
 
14,223

 
104

 
2.90
%
Senior unsecured notes
9,452

 
93

 
3.90
%
 
9,347

 
93

 
3.95
%
 
9,543

 
96

 
4.03
%
 
8,892

 
85

 
3.88
%
 
9,554

 
89

 
3.70
%
Total interest-bearing liabilities
85,663

 
556

 
2.58
%
 
86,732

 
592

 
2.71
%
 
85,554

 
583

 
2.73
%
 
86,075

 
560

 
2.64
%
 
86,776

 
543

 
2.48
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest-bearing liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest-bearing deposit accounts
281

 
 
 
 
 
283

 
 
 
 
 
271

 
 
 
 
 
286

 
 
 
 
 
284

 
 
 
 
Other liabilities
4,906

 
 
 
 
 
4,570

 
 
 
 
 
4,260

 
 
 
 
 
4,148

 
 
 
 
 
4,283

 
 
 
 
Total non-interest-bearing liabilities
5,187

 
 
 
 
 
4,853

 
 
 
 
 
4,531

 
 
 
 
 
4,434

 
 
 
 
 
4,567

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities
90,850

 
 
 
 
 
91,585

 
 
 
 
 
90,085

 
 
 
 
 
90,509

 
 
 
 
 
91,343

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total equity
15,228

 
 
 
 
 
14,828

 
 
 
 
 
14,818

 
 
 
 
 
14,790

 
 
 
 
 
14,439

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities and equity
$
106,078

 
 
 
 
 
$
106,413

 
 
 
 
 
$
104,903

 
 
 
 
 
$
105,299

 
 
 
 
 
$
105,782

 
 
 
 
Net interest income
 
 
$
4,029

 
 
 
 
 
$
4,389

 
 
 
 
 
$
4,155

 
 
 
 
 
$
4,226

 
 
 
 
 
$
4,333

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate spread(1)
 
 
 
 
14.50
%
 
 
 
 
 
15.78
%
 
 
 
 
 
15.23
%
 
 
 
 
 
15.57
%
 
 
 
 
 
15.59
%
Net interest margin(2)
 
 
 
 
15.01
%
 
 
 
 
 
16.29
%
 
 
 
 
 
15.75
%
 
 
 
 
 
16.08
%
 
 
 
 
 
16.06
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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, 2019
 
Twelve Months Ended
Dec 31, 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
$
12,320

 
$
258

 
2.09
%
 
$
11,059

 
$
207

 
1.87
%
Securities available for sale
5,464

 
127

 
2.32
%
 
6,566

 
137

 
2.09
%
 
 
 
 
 
 
 
 
 
 
 
 
Loan receivables, including held for sale:
 
 
 
 
 
 
 
 
 
 
 
Credit cards
85,334

 
18,384

 
21.54
%
 
80,219

 
17,342

 
21.62
%
Consumer installment loans
1,963

 
182

 
9.27
%
 
1,698

 
156

 
9.19
%
Commercial credit products
1,306

 
137

 
10.49
%
 
1,333

 
144

 
10.80
%
Other
46

 
2

 
4.35
%
 
54

 
2

 
3.70
%
Total loan receivables, including held for sale
88,649

 
18,705

 
21.10
%
 
83,304

 
17,644

 
21.18
%
Total interest-earning assets
106,433

 
19,090

 
17.94
%
 
100,929

 
17,988

 
17.82
%
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
1,327

 
 
 
 
 
1,224

 
 
 
 
Allowance for loan losses
(5,902
)
 
 
 
 
 
(5,900
)
 
 
 
 
Other assets
3,819

 
 
 
 
 
3,315

 
 
 
 
Total non-interest-earning assets
(756
)
 
 
 
 
 
(1,361
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
105,677

 
 
 
 
 
$
99,568

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposit accounts
$
64,756

 
$
1,566

 
2.42
%
 
$
59,216

 
$
1,186

 
2.00
%
Borrowings of consolidated securitization entities
11,941

 
358

 
3.00
%
 
12,694

 
344

 
2.71
%
Senior unsecured notes
9,310

 
367

 
3.94
%
 
9,257

 
340

 
3.67
%
Total interest-bearing liabilities
86,007

 
2,291

 
2.66
%
 
81,167

 
1,870

 
2.30
%
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest-bearing liabilities
 
 
 
 
 
 
 
 
 
 
 
Non-interest-bearing deposit accounts
280

 
 
 
 
 
282

 
 
 
 
Other liabilities
4,473

 
 
 
 
 
3,733

 
 
 
 
Total non-interest-bearing liabilities
4,753

 
 
 
 
 
4,015

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities
90,760

 
 
 
 
 
85,182

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
 
 
 
 
Total equity
14,917

 
 
 
 
 
14,386

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities and equity
$
105,677

 
 
 
 
 
$
99,568

 
 
 
 
Net interest income
 
 
$
16,799

 
 
 
 
 
$
16,118

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate spread(1)
 
 
 
 
15.28
%
 
 
 
 
 
15.52
%
Net interest margin(2)
 
 
 
 
15.78
%
 
 
 
 
 
15.97
%
 
 
 
 
 
 
 
 
 
 
 
 
(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
 
 
 
 
Dec 31,
2019
 
Sep 30,
2019
 
Jun 30,
2019
 
Mar 31,
2019
 
Dec 31,
2018
 
Dec 31, 2019 vs.
Dec 31, 2018
BALANCE SHEET STATISTICS
 
 
 
 
 
 
 
 
 
 
 
 
Total common equity
$
14,354

 
$
15,120

 
$
14,734

 
$
14,709

 
$
14,678

 
$
(324
)
(2.2
)%
Total common equity as a % of total assets
13.69
%
 
14.27
%
 
13.85
%
 
13.96
%
 
13.74
%
 
 
(0.05
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Tangible assets
$
102,483

 
$
103,688

 
$
104,095

 
$
103,049

 
$
104,631

 
$
(2,148
)
(2.1
)%
Tangible common equity(1)
$
12,011

 
$
12,865

 
$
12,441

 
$
12,374

 
$
12,517

 
$
(506
)
(4.0
)%
Tangible common equity as a % of tangible assets(1)
11.72
%
 
12.41
%
 
11.95
%
 
12.01
%
 
11.96
%
 
 
(0.24
)%
Tangible common equity per share(1)
$
19.50

 
$
19.68

 
$
18.60

 
$
17.96

 
$
17.41

 
$
2.09

12.0
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
REGULATORY CAPITAL RATIOS(2)
 
 
 
 
 
 
 
 
 
 
 
 

Basel III Fully Phased-in
 
 
 
Total risk-based capital ratio(3)
16.3
%
 
15.8
%
 
15.6
%
 
15.8
%
 
15.3
%
 
 
 
Tier 1 risk-based capital ratio(4)
15.0
%
 
14.5
%
 
14.3
%
 
14.5
%
 
14.0
%
 
 
 
Tier 1 leverage ratio(5)
12.6
%
 
12.6
%
 
12.4
%
 
12.3
%
 
12.3
%
 
 
 
Common equity Tier 1 capital ratio
14.1
%
 
14.5
%
 
14.3
%
 
14.5
%
 
14.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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, 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
 
 
 
 
Twelve Months Ended
 
 
 
 
Dec 31,
2019
 
Sep 30,
2019
 
Jun 30,
2019
 
Mar 31,
2019
 
Dec 31,
2018
 
4Q'19 vs. 4Q'18
 
Dec 31,
2019
 
Dec 31,
2018
 
YTD'19 vs. YTD'18
RETAIL CARD(1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase volume(2)(3)
$
30,968

 
$
29,282

 
$
29,530

 
$
24,660

 
$
31,755

 
$
(787
)
(2.5
)%
 
$
114,440

 
$
107,685

 
$
6,755

6.3
 %
Period-end loan receivables
$
56,387

 
$
52,697

 
$
52,307

 
$
51,572

 
$
63,827

 
$
(7,440
)
(11.7
)%
 
$
56,387

 
$
63,827

 
$
(7,440
)
(11.7
)%
Average loan receivables, including held for sale
$
54,505

 
$
60,660

 
$
59,861

 
$
60,964

 
$
60,604

 
$
(6,099
)
(10.1
)%
 
$
58,984

 
$
55,739

 
$
3,245

5.8
 %
Average active accounts (in thousands)(3)(4)
54,662

 
58,082

 
57,212

 
58,632

 
58,962

 
(4,300
)
(7.3
)%
 
57,073

 
55,828

 
1,245

2.2
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and fees on loans
$
3,143

 
$
3,570

 
$
3,390

 
$
3,454

 
$
3,502

 
$
(359
)
(10.3
)%
 
$
13,557

 
$
12,815

 
$
742

5.8
 %
Other income
$
77

 
$
65

 
$
59

 
$
76

 
$
59

 
$
18

30.5
 %
 
$
277

 
$
239

 
$
38

15.9
 %
Retailer share arrangements
$
(988
)
 
$
(998
)
 
$
(836
)
 
$
(940
)
 
$
(825
)
 
$
(163
)
19.8
 %
 
$
(3,762
)
 
$
(3,014
)
 
$
(748
)
24.8
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PAYMENT SOLUTIONS(1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase volume(2)(3)
$
6,402

 
$
6,281

 
$
5,948

 
$
5,249

 
$
6,035

 
$
367

6.1
 %
 
$
23,880

 
$
22,808

 
$
1,072

4.7
 %
Period-end loan receivables
$
20,528

 
$
20,478

 
$
19,766

 
$
19,379

 
$
19,815

 
$
713

3.6
 %
 
$
20,528

 
$
19,815

 
$
713

3.6
 %
Average loan receivables, including held for sale
$
20,701

 
$
20,051

 
$
19,409

 
$
19,497

 
$
19,333

 
$
1,368

7.1
 %
 
$
19,918

 
$
18,509

 
$
1,409

7.6
 %
Average active accounts (in thousands)(3)(4)
12,713

 
12,384

 
12,227

 
12,406

 
12,350

 
363

2.9
 %
 
12,451

 
12,087

 
364

3.0
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and fees on loans
$
737

 
$
721

 
$
685

 
$
686

 
$
708

 
$
29

4.1
 %
 
$
2,829

 
$
2,678

 
$
151

5.6
 %
Other income
$
4

 
$
(1
)
 
$
11

 
$
1

 
$
(2
)
 
$
6

NM

 
$
15

 
$
(8
)
 
$
23

NM

Retailer share arrangements
$
(37
)
 
$
(15
)
 
$
(21
)
 
$
(12
)
 
$
(25
)
 
$
(12
)
48.0
 %
 
$
(85
)
 
$
(73
)
 
$
(12
)
16.4
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CARECREDIT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase volume(2)
$
2,842

 
$
2,832

 
$
2,813

 
$
2,604

 
$
2,530

 
$
312

12.3
 %
 
$
11,091

 
$
10,164

 
$
927

9.1
 %
Period-end loan receivables
$
10,300

 
$
10,032

 
$
9,723

 
$
9,454

 
$
9,497

 
$
803

8.5
 %
 
$
10,300

 
$
9,497

 
$
803

8.5
 %
Average loan receivables, including held for sale
$
10,170

 
$
9,845

 
$
9,522

 
$
9,442

 
$
9,403

 
$
767

8.2
 %
 
$
9,747

 
$
9,056

 
$
691

7.6
 %
Average active accounts (in thousands)(4)
6,359

 
6,229

 
6,086

 
6,094

 
6,070

 
289

4.8
 %
 
6,197

 
5,932

 
265

4.5
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and fees on loans
$
612

 
$
599

 
$
561

 
$
547

 
$
564

 
$
48

8.5
 %
 
$
2,319

 
$
2,151

 
$
168

7.8
 %
Other income
$
23

 
$
21

 
$
20

 
$
15

 
$
7

 
$
16

NM

 
$
79

 
$
34

 
$
45

132.4
 %
Retailer share arrangements
$
(4
)
 
$
(3
)
 
$
(2
)
 
$
(2
)
 
$
(5
)
 
$
1

(20.0
)%
 
$
(11
)
 
$
(12
)
 
$
1

(8.3
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL SYF
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase volume(2)(3)
$
40,212

 
$
38,395

 
$
38,291

 
$
32,513

 
$
40,320

 
$
(108
)
(0.3
)%
 
$
149,411

 
$
140,657

 
$
8,754

6.2
 %
Period-end loan receivables
$
87,215

 
$
83,207

 
$
81,796

 
$
80,405

 
$
93,139

 
$
(5,924
)
(6.4
)%
 
$
87,215

 
$
93,139

 
$
(5,924
)
(6.4
)%
Average loan receivables, including held for sale
$
85,376

 
$
90,556

 
$
88,792

 
$
89,903

 
$
89,340

 
$
(3,964
)
(4.4
)%
 
$
88,649

 
$
83,304

 
$
5,345

6.4
 %
Average active accounts (in thousands)(3)(4)
73,734

 
76,695

 
75,525

 
77,132

 
77,382

 
(3,648
)
(4.7
)%
 
75,721

 
73,847

 
1,874

2.5
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and fees on loans
$
4,492

 
$
4,890

 
$
4,636

 
$
4,687

 
$
4,774

 
$
(282
)
(5.9
)%
 
$
18,705

 
$
17,644

 
$
1,061

6.0
 %
Other income
$
104

 
$
85

 
$
90

 
$
92

 
$
64

 
$
40

62.5
 %
 
$
371

 
$
265

 
$
106

40.0
 %
Retailer share arrangements
$
(1,029
)
 
$
(1,016
)
 
$
(859
)
 
$
(954
)
 
$
(855
)
 
$
(174
)
20.4
 %
 
$
(3,858
)
 
$
(3,099
)
 
$
(759
)
24.5
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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
 
 
Dec 31,
2019
 
Sep 30,
2019
 
Jun 30,
2019
 
Mar 31,
2019
 
Dec 31,
2018
 
COMMON EQUITY AND REGULATORY CAPITAL MEASURES
 
 
 
 
 
 
 
 
 
 
GAAP Total equity
$
15,088

 
$
15,120

 
$
14,734

 
$
14,709

 
$
14,678

 
Less: Preferred stock
(734
)
 
—

 
—

 
—

 
—

 
Less: Goodwill
(1,078
)
 
(1,078
)
 
(1,078
)
 
(1,076
)
 
(1,024
)
 
Less: Intangible assets, net
(1,265
)
 
(1,177
)
 
(1,215
)
 
(1,259
)
 
(1,137
)
 
Tangible common equity
$
12,011

 
$
12,865

 
$
12,441

 
$
12,374

 
$
12,517

 
Adjustments for certain deferred tax liabilities and certain items in accumulated comprehensive income (loss)
319

 
290

 
283

 
287

 
284

 
Basel III - Common equity Tier 1
$
12,330

 
$
13,155

 
$
12,724

 
$
12,661

 
$
12,801

 
Preferred stock
734

 
—

 
—

 
—

 
—

 
Basel III - Tier 1 capital
$
13,064

 
$
13,155

 
$
12,724

 
$
12,661

 
$
12,801

 
 
 
 
 
 
 
 
 
 
 
 
Add: Allowance for loan losses includible in risk-based capital
1,147

 
1,190

 
1,169

 
1,152

 
1,212

 
Total Risk-based capital
$
14,211

 
$
14,345

 
$
13,893

 
$
13,813

 
$
14,013

 
 
 
 
 
 
 
 
 
 
 
 
ASSET MEASURES
 
 
 
 
 
 
 
 
 
 
Total average assets
$
106,078

 
$
106,413

 
$
104,903

 
$
105,299

 
$
105,782

 
Adjustments for:
 
 
 
 
 
 
 
 
 
 
Disallowed goodwill and other disallowed intangible assets
(net of related deferred tax liabilities) and other
(2,059
)
 
(1,975
)
 
(2,003
)
 
(2,039
)
 
(1,845
)
 
Total assets for leverage purposes
$
104,019

 
$
104,438

 
$
102,900

 
$
103,260

 
$
103,937

 
 
 
 
 
 
 
 
 
 
 
 
Risk-weighted assets - Basel III (fully phased-in)
$
87,302

 
$
90,772

 
$
88,890

 
$
87,331

 
$
91,742

 
 
 
 
 
 
 
 
 
 
 
 
CORE PURCHASE VOLUME
 
 
 
 
 
 
 
 
 
 
Purchase volume
$
40,212

 
$
38,395

 
$
38,291

 
$
32,513

 
$
40,320

 
Less: Walmart and Yamaha Purchase volume
(267
)
 
(2,381
)
 
(2,512
)
 
(2,151
)
 
(3,028
)
 
Core Purchase volume
$
39,945

 
$
36,014

 
$
35,779

 
$
30,362

 
$
37,292

 
 
 
 
 
 
 
 
 
 
 
 
CORE LOAN RECEIVABLES
 
 
 
 
 
 
 
 
 
 
Loan receivables
$
87,215

 
$
83,207

 
$
81,796

 
$
80,405

 
$
93,139

 
Less: Walmart and Yamaha Loan receivables
(3
)
 
(872
)
 
(1,188
)
 
(1,420
)
 
(10,264
)
 
Core Loan receivables
$
87,212

 
$
82,335

 
$
80,608

 
$
78,985

 
$
82,875

 
 
 
 
 
 
 
 
 
 
 
 
Retail Card Loan receivables(2)
$
56,387

 
$
52,697

 
$
52,307

 
$
51,572

 
$
63,827

 
Less: Walmart Loan receivables
—

 
(112
)
 
(431
)
 
(692
)
 
(9,519
)
 
Core Loan receivables
$
56,387

 
$
52,585

 
$
51,876

 
$
50,880

 
$
54,308

 
 
 
 
 
 
 
 
 
 
 
 
Payment Solutions Loan receivables(2)
$
20,528

 
$
20,478

 
$
19,766

 
$
19,379

 
$
19,815

 
Less: Yamaha Loan receivables
(3
)
 
(760
)
 
(757
)
 
(728
)
 
(745
)
 
Core Loan receivables
$
20,525

 
$
19,718

 
$
19,009

 
$
18,651

 
$
19,070

 
 
 
 
 
 
 
 
 
 
 
 
CORE AVERAGE ACTIVE ACCOUNTS (in thousands)
 
 
 
 
 
 
 
 
 
 
Average active accounts (in thousands)
73,734

 
76,695

 
75,525

 
77,132

 
77,382

 
Less: Walmart and Yamaha Average active accounts (in thousands)
(1,777
)
 
(7,001
)
 
(7,215
)
 
(7,618
)
 
(7,720
)
 
Core Average active accounts (in thousands)
71,957

 
69,694

 
68,310

 
69,514

 
69,662

 
 
 
 
 
 
 
 
 
 
 
 
CORE INTEREST AND FEES ON LOANS
 
 
 
 
 
 
 
 
 
 
Interest and fees on loans
$
4,492

 
$
4,890

 
$
4,636

 
$
4,687

 
$
4,774

 
Less: Walmart and Yamaha Interest and fees on loans
(69
)
 
(531
)
 
(520
)
 
(549
)
 
(559
)
 
Core Interest and fees on loans
$
4,423

 
$
4,359

 
$
4,116

 
$
4,138

 
$
4,215

 
 
 
 
 
 
 
 
 
 
 
 
TANGIBLE COMMON EQUITY PER SHARE
 
 
 
 
 
 
 
 
 
 
GAAP book value per share
$
23.31

 
$
23.13

 
$
22.03

 
$
21.35

 
$
20.42

 
Less: Goodwill
(1.75
)
 
(1.65
)
 
(1.61
)
 
(1.56
)
 
(1.42
)
 
Less: Intangible assets, net
(2.06
)
 
(1.80
)
 
(1.82
)
 
(1.83
)
 
(1.59
)
 
Tangible common equity per share
$
19.50

 
$
19.68

 
$
18.60

 
$
17.96

 
$
17.41

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Regulatory measures at December 31, 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