Exhibit 99.2


SYNCHRONY FINANCIAL
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL SUMMARY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(unaudited, in millions, except per share statistics)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
 
 
 
Nine Months Ended
 
 
 
 
Sep 30,
2020
 
Jun 30,
2020
 
Mar 31,
2020
 
Dec 31,
2019
 
Sep 30,
2019
 
3Q'20 vs. 3Q'19
 
Sep 30,
2020
 
Sep 30,
2019
 
YTD'20 vs. YTD'19
EARNINGS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income
$
3,457

 
$
3,396

 
$
3,890

 
$
4,029

 
$
4,389

 
$
(932
)
(21.2
)%
 
$
10,743

 
$
12,770

 
$
(2,027
)
(15.9
)%
Retailer share arrangements
(899
)
 
(773
)
 
(926
)
 
(1,029
)
 
(1,016
)
 
117

(11.5
)%
 
(2,598
)
 
(2,829
)
 
231

(8.2
)%
Provision for credit losses
1,210

 
1,673

 
1,677

 
1,104

 
1,019

 
191

18.7
 %
 
4,560

 
3,076

 
1,484

48.2
 %
Net interest income, after retailer share arrangements and provision for credit losses
1,348

 
950

 
1,287

 
1,896

 
2,354

 
(1,006
)
(42.7
)%
 
3,585

 
6,865

 
(3,280
)
(47.8
)%
Other income
131

 
95

 
97

 
104

 
85

 
46

54.1
 %
 
323

 
267

 
56

21.0
 %
Other expense
1,067

 
986

 
1,002

 
1,079

 
1,064

 
3

0.3
 %
 
3,055

 
3,166

 
(111
)
(3.5
)%
Earnings before provision for income taxes
412

 
59

 
382

 
921

 
1,375

 
(963
)
(70.0
)%
 
853

 
3,966

 
(3,113
)
(78.5
)%
Provision for income taxes
99

 
11

 
96

 
190

 
319

 
(220
)
(69.0
)%
 
206

 
950

 
(744
)
(78.3
)%
Net earnings
$
313

 
$
48

 
$
286

 
$
731

 
$
1,056

 
$
(743
)
(70.4
)%
 
$
647

 
$
3,016

 
$
(2,369
)
(78.5
)%
Net earnings available to common stockholders
$
303

 
$
37

 
$
275

 
$
731

 
$
1,056

 
$
(753
)
(71.3
)%
 
$
615

 
$
3,016


$
(2,401
)
(79.6
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


 


 


 
 
 
 
 
 
 
 


 


 


 
COMMON SHARE STATISTICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic EPS
$
0.52

 
$
0.06

 
$
0.45

 
$
1.15

 
$
1.60

 
$
(1.08
)
(67.5
)%
 
$
1.04

 
$
4.42

 
$
(3.38
)
(76.5
)%
Diluted EPS
$
0.52

 
$
0.06

 
$
0.45

 
$
1.15

 
$
1.60

 
$
(1.08
)
(67.5
)%
 
$
1.04

 
$
4.40

 
$
(3.36
)
(76.4
)%
Dividend declared per share
$
0.22

 
$
0.22

 
$
0.22

 
$
0.22

 
$
0.22

 
$

 %
 
$
0.66

 
$
0.64

 
$
0.02

3.1
 %
Common stock price
$
26.17

 
$
22.16

 
$
16.09

 
$
36.01

 
$
34.09

 
$
(7.92
)
(23.2
)%
 
$
26.17

 
$
34.09

 
$
(7.92
)
(23.2
)%
Book value per share
$
19.47

 
$
19.13

 
$
19.27

 
$
23.31

 
$
23.13

 
$
(3.66
)
(15.8
)%
 
$
19.47

 
$
23.13

 
$
(3.66
)
(15.8
)%
Tangible common equity per share(1)
$
15.75

 
$
15.28

 
$
15.35

 
$
19.50

 
$
19.68

 
$
(3.93
)
(20.0
)%
 
$
15.75

 
$
19.68

 
$
(3.93
)
(20.0
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning common shares outstanding
583.7

 
583.2

 
615.9

 
653.7

 
668.9

 
(85.2
)
(12.7
)%
 
615.9

 
718.8

 
(102.9
)
(14.3
)%
Issuance of common shares

 

 

 

 

 

 %
 

 

 

 %
Stock-based compensation
0.1

 
0.5

 
0.9

 
0.6

 
0.4

 
(0.3
)
(75.0
)%
 
1.5

 
2.5

 
(1.0
)
(40.0
)%
Shares repurchased

 

 
(33.6
)
 
(38.4
)
 
(15.6
)
 
15.6

(100.0
)%
 
(33.6
)
 
(67.6
)
 
34.0

(50.3
)%
Ending common shares outstanding
583.8

 
583.7

 
583.2

 
615.9

 
653.7

 
(69.9
)
(10.7
)%
 
583.8

 
653.7

 
(69.9
)
(10.7
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding
583.8

 
583.7

 
604.9

 
633.7

 
658.3

 
(74.5
)
(11.3
)%
 
590.8

 
682.5

 
(91.7
)
(13.4
)%
Weighted average common shares outstanding (fully diluted)
584.8

 
584.4

 
607.4

 
637.7

 
661.7

 
(76.9
)
(11.6
)%
 
592.2

 
685.6

 
(93.4
)
(13.6
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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,
2020
 
Jun 30,
2020
 
Mar 31,
2020
 
Dec 31,
2019
 
Sep 30,
2019
 
3Q'20 vs. 3Q'19
 
Sep 30,
2020
 
Sep 30,
2019
 
YTD'20 vs. YTD'19
PERFORMANCE METRICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on assets(1)
1.3
%
 
0.2
%
 
1.1
%
 
2.7
%
 
3.9
%
 


(2.6
)%
 
0.9
%
 
3.8
%
 


(2.9
)%
Return on equity(2)
10.3
%
 
1.6
%
 
9.1
%
 
19.0
%
 
28.3
%
 


(18.0
)%
 
7.0
%
 
27.2
%
 


(20.2
)%
Return on tangible common equity(3)
13.1
%
 
1.6
%
 
11.6
%
 
23.0
%
 
33.4
%
 


(20.3
)%
 
8.8
%
 
32.2
%
 


(23.4
)%
Net interest margin(4)
13.80
%
 
13.53
%
 
15.15
%
 
15.01
%
 
16.29
%
 


(2.49
)%
 
14.17
%
 
16.04
%
 


(1.87
)%
Efficiency ratio(5)
39.7
%
 
36.3
%
 
32.7
%
 
34.8
%
 
30.8
%
 


8.9
 %
 
36.1
%
 
31.0
%
 


5.1
 %
Other expense as a % of average loan receivables, including held for sale
5.44
%
 
5.04
%
 
4.77
%
 
5.01
%
 
4.66
%
 


0.78
 %
 
5.08
%
 
4.72
%
 


0.36
 %
Effective income tax rate
24.0
%
 
18.6
%
 
25.1
%
 
20.6
%
 
23.2
%
 


0.8
 %
 
24.2
%
 
24.0
%
 


0.2
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CREDIT QUALITY METRICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net charge-offs as a % of average loan receivables, including held for sale
4.42
%
 
5.35
%
 
5.36
%
 
5.15
%
 
5.35
%
 


(0.93
)%
 
5.05
%
 
5.80
%
 


(0.75
)%
30+ days past due as a % of period-end loan receivables(6)
2.67
%
 
3.13
%
 
4.24
%
 
4.44
%
 
4.47
%
 


(1.80
)%
 
2.67
%
 
4.47
%
 


(1.80
)%
90+ days past due as a % of period-end loan receivables(6)
1.24
%
 
1.77
%
 
2.10
%
 
2.15
%
 
2.07
%
 


(0.83
)%
 
1.24
%
 
2.07
%
 


(0.83
)%
Net charge-offs
$
866

 
$
1,046

 
$
1,125

 
$
1,109

 
$
1,221

 
$
(355
)
(29.1
)%
 
$
3,037

 
$
3,896

 
$
(859
)
(22.0
)%
Loan receivables delinquent over 30 days(6)
$
2,100

 
$
2,453

 
$
3,500

 
$
3,874

 
$
3,723

 
$
(1,623
)
(43.6
)%
 
$
2,100

 
$
3,723

 
$
(1,623
)
(43.6
)%
Loan receivables delinquent over 90 days(6)
$
973

 
$
1,384

 
$
1,735

 
$
1,877

 
$
1,723

 
$
(750
)
(43.5
)%
 
$
973

 
$
1,723

 
$
(750
)
(43.5
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses (period-end)
$
10,146

 
$
9,802

 
$
9,175

 
$
5,602

 
$
5,607

 
$
4,539

81.0
 %
 
$
10,146

 
$
5,607

 
$
4,539

81.0
 %
Allowance coverage ratio(7)
12.92
%
 
12.52
%
 
11.13
%
 
6.42
%
 
6.74
%
 


6.18
 %
 
12.92
%
 
6.74
%
 


6.18
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BUSINESS METRICS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase volume(8)(9)
$
36,013

 
$
31,155

 
$
32,042

 
$
40,212

 
$
38,395

 
$
(2,382
)
(6.2
)%
 
$
99,210

 
$
109,199

 
$
(9,989
)
(9.1
)%
Period-end loan receivables
$
78,521

 
$
78,313

 
$
82,469

 
$
87,215

 
$
83,207

 
$
(4,686
)
(5.6
)%
 
$
78,521

 
$
83,207

 
$
(4,686
)
(5.6
)%
Credit cards
$
75,204

 
$
75,353

 
$
79,832

 
$
84,606

 
$
79,788

 
$
(4,584
)
(5.7
)%
 
$
75,204

 
$
79,788

 
$
(4,584
)
(5.7
)%
Consumer installment loans
$
1,987

 
$
1,779

 
$
1,390

 
$
1,347

 
$
2,050

 
$
(63
)
(3.1
)%
 
$
1,987

 
$
2,050

 
$
(63
)
(3.1
)%
Commercial credit products
$
1,270

 
$
1,140

 
$
1,203

 
$
1,223

 
$
1,317

 
$
(47
)
(3.6
)%
 
$
1,270

 
$
1,317

 
$
(47
)
(3.6
)%
Other
$
60

 
$
41

 
$
44

 
$
39

 
$
52

 
$
8

15.4
 %
 
$
60

 
$
52

 
$
8

15.4
 %
Average loan receivables, including held for sale
$
78,005

 
$
78,697

 
$
84,428

 
$
85,376

 
$
90,556

 
$
(12,551
)
(13.9
)%
 
$
80,368

 
$
89,752

 
$
(9,384
)
(10.5
)%
Period-end active accounts (in thousands)(9)(10)
64,800

 
63,430

 
68,849

 
75,471

 
77,094

 
(12,294
)
(15.9
)%
 
64,800

 
77,094

 
(12,294
)
(15.9
)%
Average active accounts (in thousands)(9)(10)
64,270

 
64,836

 
72,078

 
73,734

 
76,695

 
(12,425
)
(16.2
)%
 
67,246

 
76,653

 
(9,407
)
(12.3
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIQUIDITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liquid assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and equivalents
$
13,552

 
$
16,344

 
$
13,704

 
$
12,147

 
$
11,461

 
$
2,091

18.2
 %
 
$
13,552

 
$
11,461

 
$
2,091

18.2
 %
Total liquid assets
$
21,402

 
$
22,352

 
$
19,225

 
$
17,322

 
$
15,201

 
$
6,201

40.8
 %
 
$
21,402

 
$
15,201

 
$
6,201

40.8
 %
Undrawn credit facilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Undrawn credit facilities
$
5,400

 
$
5,650

 
$
5,600

 
$
6,050

 
$
6,500

 
$
(1,100
)
(16.9
)%
 
$
5,400

 
$
6,500

 
$
(1,100
)
(16.9
)%
Total liquid assets and undrawn credit facilities
$
26,802

 
$
28,002

 
$
24,825

 
$
23,372

 
$
21,701

 
$
5,101

23.5
 %
 
$
26,802

 
$
21,701

 
$
5,101

23.5
 %
Liquid assets % of total assets
22.37
%
 
23.15
%
 
19.61
%
 
16.52
%
 
14.35
%
 


8.02
 %
 
22.37
%
 
14.35
%
 


8.02
 %
Liquid assets including undrawn credit facilities % of total assets
28.02
%
 
29.00
%
 
25.32
%
 
22.30
%
 
20.48
%
 


7.54
 %
 
28.02
%
 
20.48
%
 


7.54
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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 available to common stockholders 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 credit 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,
2020
 
Jun 30,
2020
 
Mar 31,
2020
 
Dec 31,
2019
 
Sep 30,
2019
 
3Q'20 vs. 3Q'19
 
Sep 30,
2020
 
Sep 30,
2019
 
YTD'20 vs. YTD'19
Interest income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and fees on loans
$
3,821

 
$
3,808

 
$
4,340

 
$
4,492

 
$
4,890

 
$
(1,069
)
(21.9
)%
 
$
11,969

 
$
14,213

 
$
(2,244
)
(15.8
)%
Interest on cash and debt securities
16

 
22

 
67

 
93

 
91

 
(75
)
(82.4
)%
 
105

 
292

 
(187
)
(64.0
)%
Total interest income
3,837

 
3,830

 
4,407

 
4,585

 
4,981

 
(1,144
)
(23.0
)%
 
12,074

 
14,505

 
(2,431
)
(16.8
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest on deposits
245

 
293

 
356

 
383

 
411

 
(166
)
(40.4
)%
 
894

 
1,183

 
(289
)
(24.4
)%
Interest on borrowings of consolidated securitization entities
53

 
59

 
73

 
80

 
88

 
(35
)
(39.8
)%
 
185

 
278

 
(93
)
(33.5
)%
Interest on senior unsecured notes
82

 
82

 
88

 
93

 
93

 
(11
)
(11.8
)%
 
252

 
274

 
(22
)
(8.0
)%
Total interest expense
380

 
434

 
517

 
556

 
592

 
(212
)
(35.8
)%
 
1,331

 
1,735

 
(404
)
(23.3
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income
3,457

 
3,396

 
3,890

 
4,029

 
4,389

 
(932
)
(21.2
)%
 
10,743

 
12,770

 
(2,027
)
(15.9
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Retailer share arrangements
(899
)
 
(773
)
 
(926
)
 
(1,029
)
 
(1,016
)
 
117

(11.5
)%
 
(2,598
)
 
(2,829
)
 
231

(8.2
)%
Provision for credit losses
1,210

 
1,673

 
1,677

 
1,104

 
1,019

 
191

18.7
 %
 
4,560

 
3,076

 
1,484

48.2
 %
Net interest income, after retailer share arrangements and provision for credit losses
1,348

 
950

 
1,287

 
1,896

 
2,354

 
(1,006
)
(42.7
)%
 
3,585

 
6,865

 
(3,280
)
(47.8
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interchange revenue
172

 
134

 
161

 
192

 
197

 
(25
)
(12.7
)%
 
467

 
556

 
(89
)
(16.0
)%
Debt cancellation fees
68

 
69

 
69

 
64

 
64

 
4

6.3
 %
 
206

 
201

 
5

2.5
 %
Loyalty programs
(155
)
 
(134
)
 
(158
)
 
(181
)
 
(203
)
 
48

(23.6
)%
 
(447
)
 
(562
)
 
115

(20.5
)%
Other
46

 
26

 
25

 
29

 
27

 
19

70.4
 %
 
97

 
72

 
25

34.7
 %
Total other income
131

 
95

 
97

 
104

 
85

 
46

54.1
 %
 
323

 
267

 
56

21.0
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other expense:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Employee costs
382

 
327

 
324

 
385

 
359

 
23

6.4
 %
 
1,033

 
1,070

 
(37
)
(3.5
)%
Professional fees
187

 
189

 
197

 
199

 
205

 
(18
)
(8.8
)%
 
573

 
668

 
(95
)
(14.2
)%
Marketing and business development
107

 
91

 
111

 
152

 
139

 
(32
)
(23.0
)%
 
309

 
397

 
(88
)
(22.2
)%
Information processing
125

 
116

 
123

 
122

 
127

 
(2
)
(1.6
)%
 
364

 
363

 
1

0.3
 %
Other
266

 
263

 
247

 
221

 
234

 
32

13.7
 %
 
776

 
668

 
108

16.2
 %
Total other expense
1,067

 
986

 
1,002

 
1,079

 
1,064

 
3

0.3
 %
 
3,055

 
3,166

 
(111
)
(3.5
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings before provision for income taxes
412

 
59

 
382

 
921

 
1,375

 
(963
)
(70.0
)%
 
853

 
3,966

 
(3,113
)
(78.5
)%
Provision for income taxes
99

 
11

 
96

 
190

 
319

 
(220
)
(69.0
)%
 
206

 
950

 
(744
)
(78.3
)%
Net earnings
$
313

 
$
48

 
$
286

 
$
731

 
$
1,056

 
$
(743
)
(70.4
)%
 
$
647

 
$
3,016

 
$
(2,369
)
(78.5
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net earnings available to common stockholders
$
303

 
$
37

 
$
275

 
$
731

 
$
1,056

 
$
(753
)
(71.3
)%
 
$
615

 
$
3,016

 
$
(2,401
)
(79.6
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 


3



SYNCHRONY FINANCIAL
 
 
 
 
 
 
 
 
 
 
 
 
STATEMENTS OF FINANCIAL POSITION
 
 
 
 
 
 
 
 
 
 
(unaudited, $ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
 
 
 
Sep 30,
2020
 
Jun 30,
2020
 
Mar 31,
2020
 
Dec 31,
2019
 
Sep 30,
2019
 
Sep 30, 2020 vs. Sep 30, 2019
Assets
 
 
 
 
 
 
 
 
 
 
 
 
Cash and equivalents
$
13,552

 
$
16,344

 
$
13,704

 
$
12,147

 
$
11,461

 
$
2,091

18.2
 %
Debt securities
8,432

 
6,623

 
6,146

 
5,911

 
4,584

 
3,848

83.9
 %
Loan receivables:
 
 
 
 
 
 
 
 
 
 
 
 
Unsecuritized loans held for investment
52,613

 
52,629

 
54,765

 
58,398

 
56,220

 
(3,607
)
(6.4
)%
Restricted loans of consolidated securitization entities
25,908

 
25,684

 
27,704

 
28,817

 
26,987

 
(1,079
)
(4.0
)%
Total loan receivables
78,521

 
78,313

 
82,469

 
87,215

 
83,207

 
(4,686
)
(5.6
)%
Less: Allowance for credit losses(1)
(10,146
)
 
(9,802
)
 
(9,175
)
 
(5,602
)
 
(5,607
)
 
(4,539
)
81.0
 %
Loan receivables, net
68,375

 
68,511

 
73,294

 
81,613

 
77,600

 
(9,225
)
(11.9
)%
Loan receivables held for sale
4

 
4

 
5

 
725

 
8,182

 
(8,178
)
(100.0
)%
Goodwill
1,078

 
1,078

 
1,078

 
1,078

 
1,078

 

 %
Intangible assets, net
1,091

 
1,166

 
1,208

 
1,265

 
1,177

 
(86
)
(7.3
)%
Other assets
3,126

 
2,818

 
2,603

 
2,087

 
1,861

 
1,265

68.0
 %
Total assets
$
95,658

 
$
96,544

 
$
98,038

 
$
104,826

 
$
105,943

 
$
(10,285
)
(9.7
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and Equity
 
 
 
 
 
 
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposit accounts
$
63,195

 
$
63,857

 
$
64,302

 
$
64,877

 
$
65,677

 
$
(2,482
)
(3.8
)%
Non-interest-bearing deposit accounts
298

 
291

 
313

 
277

 
295

 
3

1.0
 %
Total deposits
63,493

 
64,148

 
64,615

 
65,154

 
65,972

 
(2,479
)
(3.8
)%
Borrowings:
 
 
 
 
 
 
 
 
 
 
 
 
Borrowings of consolidated securitization entities
7,809

 
8,109

 
9,291

 
10,412

 
10,912

 
(3,103
)
(28.4
)%
Senior unsecured notes
7,962

 
7,960

 
7,957

 
9,454

 
9,451

 
(1,489
)
(15.8
)%
Total borrowings
15,771

 
16,069

 
17,248

 
19,866

 
20,363

 
(4,592
)
(22.6
)%
Accrued expenses and other liabilities
4,295

 
4,428

 
4,205

 
4,718

 
4,488

 
(193
)
(4.3
)%
Total liabilities
83,559

 
84,645

 
86,068

 
89,738

 
90,823

 
(7,264
)
(8.0
)%
Equity:
 
 
 
 
 
 
 
 
 
 
 
 
Preferred stock
734

 
734

 
734

 
734

 

 
734

NM

Common stock
1

 
1

 
1

 
1

 
1

 

 %
Additional paid-in capital
9,552

 
9,532

 
9,523

 
9,537

 
9,520

 
32

0.3
 %
Retained earnings
10,024

 
9,852

 
9,960

 
12,117

 
11,533

 
(1,509
)
(13.1
)%
Accumulated other comprehensive income (loss)
(31
)
 
(37
)
 
(49
)
 
(58
)
 
(44
)
 
13

(29.5
)%
Treasury stock
(8,181
)
 
(8,183
)
 
(8,199
)
 
(7,243
)
 
(5,890
)
 
(2,291
)
38.9
 %
Total equity
12,099

 
11,899

 
11,970

 
15,088

 
15,120

 
(3,021
)
(20.0
)%
Total liabilities and equity
$
95,658

 
$
96,544

 
$
98,038

 
$
104,826

 
$
105,943

 
$
(10,285
)
(9.7
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Effective January 1, 2020, the Company adopted ASU 2016-13, Financial Instruments-Credit Losses ("CECL") that measures the allowance for credit losses based on management’s best estimate of expected credit losses for the life of our loan receivables. Prior periods presented reflect measurement of the allowance based on management’s estimate of probable incurred credit losses in accordance with the previous accounting guidance effective for those periods.

4



SYNCHRONY FINANCIAL
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AVERAGE BALANCES, NET INTEREST INCOME AND NET INTEREST MARGIN
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(unaudited, $ in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
Sep 30, 2020
 
Jun 30, 2020
 
Mar 31, 2020
 
Dec 31, 2019
 
Sep 30, 2019
 
 
 
Interest
 
Average
 
 
 
Interest
 
Average
 
 
 
Interest
 
Average
 
 
 
Interest
 
Average
 
 
 
Interest
 
Average
 
Average
 
Income/
 
Yield/
 
Average
 
Income/
 
Yield/
 
Average
 
Income/
 
Yield/
 
Average
 
Income/
 
Yield/
 
Average
 
Income/
 
Yield/
 
Balance
 
Expense
 
Rate
 
Balance
 
Expense
 
Rate
 
Balance
 
Expense
 
Rate
 
Balance
 
Expense
 
Rate
 
Balance
 
Expense
 
Rate
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-earning cash and equivalents
$
13,664

 
$
4

 
0.12
%
 
$
15,413

 
$
3

 
0.08
%
 
$
12,902

 
$
42

 
1.31
%
 
$
16,269

 
$
68

 
1.66
%
 
$
10,947

 
$
59

 
2.14
%
Securities available for sale
7,984

 
12

 
0.60
%
 
6,804

 
19

 
1.12
%
 
5,954

 
25

 
1.69
%
 
4,828

 
25

 
2.05
%
 
5,389

 
32

 
2.36
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loan receivables, including held for sale:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit cards
74,798

 
3,752

 
19.96
%
 
75,942

 
3,740

 
19.81
%
 
81,716

 
4,272

 
21.03
%
 
81,960

 
4,409

 
21.34
%
 
87,156

 
4,807

 
21.88
%
Consumer installment loans
1,892

 
46

 
9.67
%
 
1,546

 
37

 
9.63
%
 
1,432

 
35

 
9.83
%
 
2,058

 
48

 
9.25
%
 
2,022

 
48

 
9.42
%
Commercial credit products
1,238

 
22

 
7.07
%
 
1,150

 
30

 
10.49
%
 
1,243

 
33

 
10.68
%
 
1,311

 
34

 
10.29
%
 
1,329

 
35

 
10.45
%
Other
77

 
1

 
NM

 
59

 
1

 
NM

 
37

 

 
%
 
47

 
1

 
NM

 
49

 

 
%
Total loan receivables, including held for sale
78,005

 
3,821

 
19.49
%
 
78,697

 
3,808

 
19.46
%
 
84,428

 
4,340

 
20.67
%
 
85,376

 
4,492

 
20.87
%
 
90,556

 
4,890

 
21.42
%
Total interest-earning assets
99,653

 
3,837

 
15.32
%
 
100,914

 
3,830

 
15.26
%
 
103,284

 
4,407

 
17.16
%
 
106,473

 
4,585

 
17.08
%
 
106,892

 
4,981

 
18.49
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
1,489

 
 
 
 
 
1,486

 
 
 
 
 
1,450

 
 
 
 
 
1,326

 
 
 
 
 
1,374

 
 
 
 
Allowance for credit losses
(9,823
)
 
 
 
 
 
(9,221
)
 
 
 
 
 
(8,708
)
 
 
 
 
 
(5,593
)
 
 
 
 
 
(5,773
)
 
 
 
 
Other assets
5,021

 
 
 
 
 
4,779

 
 
 
 
 
4,696

 
 
 
 
 
3,872

 
 
 
 
 
3,920

 
 
 
 
Total non-interest-earning assets
(3,313
)
 
 
 
 
 
(2,956
)
 
 
 
 
 
(2,562
)
 
 
 
 
 
(395
)
 
 
 
 
 
(479
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
96,340

 
 
 
 
 
$
97,958

 
 
 
 
 
$
100,722

 
 
 
 
 
$
106,078

 
 
 
 
 
$
106,413

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposit accounts
$
63,569

 
$
245

 
1.53
%
 
$
64,298

 
$
293

 
1.83
%
 
$
64,366

 
$
356

 
2.22
%
 
$
65,380

 
$
383

 
2.32
%
 
$
65,615

 
$
411

 
2.49
%
Borrowings of consolidated securitization entities
8,057

 
53

 
2.62
%
 
8,863

 
59

 
2.68
%
 
9,986

 
73

 
2.94
%
 
10,831

 
80

 
2.93
%
 
11,770

 
88

 
2.97
%
Senior unsecured notes
7,960

 
82

 
4.10
%
 
7,958

 
82

 
4.14
%
 
8,807

 
88

 
4.02
%
 
9,452

 
93

 
3.90
%
 
9,347

 
93

 
3.95
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total interest-bearing liabilities
79,586

 
380

 
1.90
%
 
81,119

 
434

 
2.15
%
 
83,159

 
517

 
2.50
%
 
85,663

 
556

 
2.58
%
 
86,732

 
592

 
2.71
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest-bearing liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest-bearing deposit accounts
307

 
 
 
 
 
309

 
 
 
 
 
299

 
 
 
 
 
281

 
 
 
 
 
283

 
 
 
 
Other liabilities
4,308

 
 
 
 
 
4,349

 
 
 
 
 
4,672

 
 
 
 
 
4,906

 
 
 
 
 
4,570

 
 
 
 
Total non-interest-bearing liabilities
4,615

 
 
 
 
 
4,658

 
 
 
 
 
4,971

 
 
 
 
 
5,187

 
 
 
 
 
4,853

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities
84,201

 
 
 
 
 
85,777

 
 
 
 
 
88,130

 
 
 
 
 
90,850

 
 
 
 
 
91,585

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total equity
12,139

 
 
 
 
 
12,181

 
 
 
 
 
12,592

 
 
 
 
 
15,228

 
 
 
 
 
14,828

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities and equity
$
96,340

 
 
 
 
 
$
97,958

 
 
 
 
 
$
100,722

 
 
 
 
 
$
106,078

 
 
 
 
 
$
106,413

 
 
 
 
Net interest income
 
 
$
3,457

 
 
 
 
 
$
3,396

 
 
 
 
 
$
3,890

 
 
 
 
 
$
4,029

 
 
 
 
 
$
4,389

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate spread(1)
 
 
 
 
13.42
%
 
 
 
 
 
13.11
%
 
 
 
 
 
14.66
%
 
 
 
 
 
14.50
%
 
 
 
 
 
15.78
%
Net interest margin(2)
 
 
 
 
13.80
%
 
 
 
 
 
13.53
%
 
 
 
 
 
15.15
%
 
 
 
 
 
15.01
%
 
 
 
 
 
16.29
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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, 2020
 
Nine Months Ended
Sep 30, 2019
 
 
 
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
$
13,992

 
$
49

 
0.47
%
 
$
10,989

 
$
190

 
2.31
%
Securities available for sale
6,918

 
56

 
1.08
%
 
5,679

 
102

 
2.40
%
 
 
 
 
 
 
 
 
 
 
 
 
Loan receivables, including held for sale:
 
 
 
 
 
 
 
 
 
 
 
Credit cards, including held for sale
77,476

 
11,764

 
20.28
%
 
86,471

 
13,975

 
21.61
%
Consumer installment loans
1,624

 
118

 
9.71
%
 
1,931

 
134

 
9.28
%
Commercial credit products
1,210

 
85

 
9.38
%
 
1,304

 
103

 
10.56
%
Other
58

 
2

 
4.61
%
 
46

 
1

 
2.91
%
Total loan receivables, including held for sale
80,368

 
11,969

 
19.89
%
 
89,752

 
14,213

 
21.17
%
Total interest-earning assets
101,278

 
12,074

 
15.92
%
 
106,420

 
14,505

 
18.22
%
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
1,475

 
 
 
 
 
1,327

 
 
 
 
Allowance for loan losses
(9,253
)
 
 
 
 
 
(6,006
)
 
 
 
 
Other assets
4,833

 
 
 
 
 
3,801

 
 
 
 
Total non-interest-earning assets
(2,945
)
 
 
 
 
 
(878
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
98,333

 
 
 
 
 
$
105,542

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposit accounts
$
64,075

 
$
894

 
1.86
%
 
$
64,546

 
$
1,183

 
2.45
%
Borrowings of consolidated securitization entities
8,966

 
185

 
2.76
%
 
12,315

 
278

 
3.02
%
Senior unsecured notes
8,241

 
252

 
4.08
%
 
9,262

 
274

 
3.96
%
Total interest-bearing liabilities
81,282

 
1,331

 
2.19
%
 
86,123

 
1,735

 
2.69
%
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest-bearing liabilities
 
 
 
 
 
 
 
 
 
 
 
Non-interest-bearing deposit accounts
305

 
 
 
 
 
280

 
 
 
 
Other liabilities
4,443

 
 
 
 
 
4,327

 
 
 
 
Total non-interest-bearing liabilities
4,748

 
 
 
 
 
4,607

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities
86,030

 
 
 
 
 
90,730

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
 
 
 
 
Total equity
12,303

 
 
 
 
 
14,812

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities and equity
$
98,333

 
 
 
 
 
$
105,542

 
 
 
 
Net interest income
 
 
$
10,743

 
 
 
 
 
$
12,770

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate spread(1)
 
 
 
 
13.73
%
 
 
 
 
 
15.53
%
Net interest margin(2)
 
 
 
 
14.17
%
 
 
 
 
 
16.04
%
 
 
 
 
 
 
 
 
 
 
 
 
(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,
2020
 
Jun 30,
2020
 
Mar 31,
2020
 
Dec 31,
2019
 
Sep 30,
2019
 
Sep 30, 2020 vs.
Sep 30, 2019
BALANCE SHEET STATISTICS
 
 
 
 
 
 
 
 
 
 
 
 
Total common equity
$
11,365

 
$
11,165

 
$
11,236

 
$
14,354

 
$
15,120

 
$
(3,755
)
(24.8
)%
Total common equity as a % of total assets
11.88
%
 
11.56
%
 
11.46
%
 
13.69
%
 
14.27
%
 

(2.39
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Tangible assets
$
93,489

 
$
94,300

 
$
95,752

 
$
102,483

 
$
103,688

 
$
(10,199
)
(9.8
)%
Tangible common equity(1)
$
9,196

 
$
8,921

 
$
8,950

 
$
12,011

 
$
12,865

 
$
(3,669
)
(28.5
)%
Tangible common equity as a % of tangible assets(1)
9.84
%
 
9.46
%
 
9.35
%
 
11.72
%
 
12.41
%
 

(2.57
)%
Tangible common equity per share(1)
$
15.75

 
$
15.28

 
$
15.35

 
$
19.50

 
$
19.68

 
$
(3.93
)
(20.0
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
REGULATORY CAPITAL RATIOS(2)(3)
 
 
 
 
 
 
 
 
 
 
 
 

Basel III - CECL Transition
 
Basel III
 
 
 
Total risk-based capital ratio(4)
18.1
%
 
17.6
%
 
16.5
%
 
16.3
%
 
15.8
%
 
 
 
Tier 1 risk-based capital ratio(5)
16.7
%
 
16.3
%
 
15.2
%
 
15.0
%
 
14.5
%
 
 
 
Tier 1 leverage ratio(6)
13.3
%
 
12.7
%
 
12.3
%
 
12.6
%
 
12.6
%
 
 
 
Common equity Tier 1 capital ratio
15.8
%
 
15.3
%
 
14.3
%
 
14.1
%
 
14.5
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

(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 ratios at September 30, 2020 are preliminary and therefore subject to change.
(3) Capital ratios starting March 31, 2020 reflect election to delay for two years an estimate of CECL’s effect on regulatory capital in accordance with the interim final rule issued by U.S. banking agencies in March 2020.
(4) Total risk-based capital ratio is the ratio of total risk-based capital divided by risk-weighted assets.
(5) Tier 1 risk-based capital ratio is the ratio of Tier 1 capital divided by risk-weighted assets.
(6) 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,
2020
 
Jun 30,
2020
 
Mar 31,
2020
 
Dec 31,
2019
 
Sep 30,
2019
 
3Q'20 vs. 3Q'19
 
Sep 30,
2020
 
Sep 30,
2019
 
YTD'20 vs. YTD'19
RETAIL CARD
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase volume(1)(2)
$
27,374

 
$
24,380

 
$
24,008

 
$
30,968

 
$
29,282

 
$
(1,908
)
(6.5
)%
 
$
75,762

 
$
83,472

 
$
(7,710
)
(9.2
)%
Period-end loan receivables
$
49,595

 
$
49,967

 
$
52,390

 
$
56,387

 
$
52,697

 
$
(3,102
)
(5.9
)%
 
$
49,595

 
$
52,697

 
$
(3,102
)
(5.9
)%
Average loan receivables, including held for sale
$
49,503

 
$
50,238

 
$
53,820

 
$
54,505

 
$
60,660

 
$
(11,157
)
(18.4
)%
 
$
51,181

 
$
60,494

 
$
(9,313
)
(15.4
)%
Average active accounts (in thousands)(2)(3)
47,065

 
46,970

 
53,018

 
54,662

 
58,082

 
(11,017
)
(19.0
)%
 
49,197

 
58,156

 
(8,959
)
(15.4
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and fees on loans
$
2,619

 
$
2,640

 
$
3,037

 
$
3,143

 
$
3,570

 
$
(951
)
(26.6
)%
 
$
8,296

 
$
10,414

 
$
(2,118
)
(20.3
)%
Other income
$
84

 
$
56

 
$
59

 
$
77

 
$
65

 
$
19

29.2
 %
 
$
199

 
$
200

 
$
(1
)
(0.5
)%
Retailer share arrangements
$
(877
)
 
$
(752
)
 
$
(904
)
 
$
(988
)
 
$
(998
)
 
$
121

(12.1
)%
 
$
(2,533
)
 
$
(2,774
)
 
$
241

(8.7
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PAYMENT SOLUTIONS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase volume(1)(2)
$
5,901

 
$
4,823

 
$
5,375

 
$
6,402

 
$
6,281

 
$
(380
)
(6.0
)%
 
$
16,099

 
$
17,478

 
$
(1,379
)
(7.9
)%
Period-end loan receivables
$
19,550

 
$
19,119

 
$
19,973

 
$
20,528

 
$
20,478

 
$
(928
)
(4.5
)%
 
$
19,550

 
$
20,478

 
$
(928
)
(4.5
)%
Average loan receivables, including held for sale
$
19,247

 
$
19,065

 
$
20,344

 
$
20,701

 
$
20,051

 
$
(804
)
(4.0
)%
 
$
19,551

 
$
19,654

 
$
(103
)
(0.5
)%
Average active accounts (in thousands)(2)(3)
11,497

 
11,900

 
12,681

 
12,713

 
12,384

 
(887
)
(7.2
)%
 
12,031

 
12,354

 
(323
)
(2.6
)%
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and fees on loans
$
650

 
$
632

 
$
706

 
$
737

 
$
721

 
$
(71
)
(9.8
)%
 
$
1,988

 
$
2,092

 
$
(104
)
(5.0
)%
Other income
$
13

 
$
14

 
$
13

 
$
4

 
$
(1
)
 
$
14

NM

 
$
40

 
$
11

 
$
29

NM

Retailer share arrangements
$
(20
)
 
$
(18
)
 
$
(18
)
 
$
(37
)
 
$
(15
)
 
$
(5
)
33.3
 %
 
$
(56
)
 
$
(48
)
 
$
(8
)
16.7
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CARECREDIT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase volume(1)
$
2,738

 
$
1,952

 
$
2,659

 
$
2,842

 
$
2,832

 
$
(94
)
(3.3
)%
 
$
7,349

 
$
8,249

 
$
(900
)
(10.9
)%
Period-end loan receivables
$
9,376

 
$
9,227

 
$
10,106

 
$
10,300

 
$
10,032

 
$
(656
)
(6.5
)%
 
$
9,376

 
$
10,032

 
$
(656
)
(6.5
)%
Average loan receivables, including held for sale
$
9,255

 
$
9,394

 
$
10,264

 
$
10,170

 
$
9,845

 
$
(590
)
(6.0
)%
 
$
9,636

 
$
9,604

 
$
32

0.3
 %
Average active accounts (in thousands)(3)
5,708

 
5,966

 
6,379

 
6,359

 
6,229

 
(521
)
(8.4
)%
 
6,018

 
6,143

 
(125
)
(2.0
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and fees on loans
$
552

 
$
536

 
$
597

 
$
612

 
$
599

 
$
(47
)
(7.8
)%
 
$
1,685

 
$
1,707

 
$
(22
)
(1.3
)%
Other income
$
34

 
$
25

 
$
25

 
$
23

 
$
21

 
$
13

61.9
 %
 
$
84

 
$
56

 
$
28

50.0
 %
Retailer share arrangements
$
(2
)
 
$
(3
)
 
$
(4
)
 
$
(4
)
 
$
(3
)
 
$
1

(33.3
)%
 
$
(9
)
 
$
(7
)
 
$
(2
)
28.6
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL SYF
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase volume(1)(2)
$
36,013

 
$
31,155

 
$
32,042

 
$
40,212

 
$
38,395

 
$
(2,382
)
(6.2
)%
 
$
99,210

 
$
109,199

 
$
(9,989
)
(9.1
)%
Period-end loan receivables
$
78,521

 
$
78,313

 
$
82,469

 
$
87,215

 
$
83,207

 
$
(4,686
)
(5.6
)%
 
$
78,521

 
$
83,207

 
$
(4,686
)
(5.6
)%
Average loan receivables, including held for sale
$
78,005

 
$
78,697

 
$
84,428

 
$
85,376

 
$
90,556

 
$
(12,551
)
(13.9
)%
 
$
80,368

 
$
89,752

 
$
(9,384
)
(10.5
)%
Average active accounts (in thousands)(2)(3)
64,270

 
64,836

 
72,078

 
73,734

 
76,695

 
(12,425
)
(16.2
)%
 
67,246

 
76,653

 
(9,407
)
(12.3
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and fees on loans
$
3,821

 
$
3,808

 
$
4,340

 
$
4,492

 
$
4,890

 
$
(1,069
)
(21.9
)%
 
$
11,969

 
$
14,213

 
$
(2,244
)
(15.8
)%
Other income
$
131

 
$
95

 
$
97

 
$
104

 
$
85

 
$
46

54.1
 %
 
$
323

 
$
267

 
$
56

21.0
 %
Retailer share arrangements
$
(899
)
 
$
(773
)
 
$
(926
)
 
$
(1,029
)
 
$
(1,016
)
 
$
117

(11.5
)%
 
$
(2,598
)
 
$
(2,829
)
 
$
231

(8.2
)%
(1) Purchase volume, or net credit sales, represents the aggregate amount of charges incurred on credit cards or other credit product accounts less returns during the period.
 
 
 
 
 
 
 
(2) Includes activity and balances associated with loan receivables held for sale.
 
 
 
 
 
 
 
(3) Active accounts represent credit card or installment loan accounts on which there has been a purchase, payment or outstanding balance in the current month.
 
 
 
 
 
 
 

 
 
 
 
 
 
 

 
 
 
 
 
 
 

8



SYNCHRONY FINANCIAL
 
 
 
 
 
 
 
 
 
RECONCILIATION OF NON-GAAP MEASURES AND CALCULATIONS OF REGULATORY MEASURES(1)
 
 
(unaudited, $ in millions, except per share statistics)
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
Sep 30,
2020
 
Jun 30,
2020
 
Mar 31,
2020
 
Dec 31,
2019
 
Sep 30,
2019
COMMON EQUITY AND REGULATORY CAPITAL MEASURES(2)
 
 
 
 
 
 
 
 
 
GAAP Total equity
$
12,099

 
$
11,899

 
$
11,970

 
$
15,088

 
$
15,120

Less: Preferred stock
(734
)
 
(734
)
 
(734
)
 
(734
)
 

Less: Goodwill
(1,078
)
 
(1,078
)
 
(1,078
)
 
(1,078
)
 
(1,078
)
Less: Intangible assets, net
(1,091
)
 
(1,166
)
 
(1,208
)
 
(1,265
)
 
(1,177
)
Tangible common equity
$
9,196

 
$
8,921

 
$
8,950

 
$
12,011

 
$
12,865

Add: CECL transition amount
2,656

 
2,570

 
2,417

 

 

 
 
 
 
 
 
 
 
 
 
Adjustments for certain deferred tax liabilities and certain items in accumulated comprehensive income (loss)
305

 
302

 
304

 
319

 
290

Common equity Tier 1
$
12,157

 
$
11,793

 
$
11,671

 
$
12,330

 
$
13,155

Preferred stock
734

 
734

 
734

 
734

 

Tier 1 capital
$
12,891

 
$
12,527

 
$
12,405

 
$
13,064

 
$
13,155

 
 
 
 
 
 
 
 
 
 
Add: Allowance for credit losses includible in risk-based capital
1,034

 
1,031

 
1,082

 
1,147

 
1,190

Total Risk-based capital
$
13,925

 
$
13,558

 
$
13,487

 
$
14,211

 
$
14,345

 
 
 
 
 
 
 
 
 
 
ASSET MEASURES(2)
 
 
 
 
 
 
 
 
 
Total average assets
$
96,340

 
$
97,958

 
$
100,722

 
$
106,078

 
$
106,413

Adjustments for:
 
 
 
 
 
 
 
 
 
Add: CECL transition amount
2,656

 
2,570

 
2,417

 

 

Disallowed goodwill and other disallowed intangible assets
(net of related deferred tax liabilities) and other
(1,906
)
 
(1,980
)
 
(2,010
)
 
(2,059
)
 
(1,975
)
Total assets for leverage purposes
$
97,090

 
$
98,548

 
$
101,129

 
$
104,019

 
$
104,438

 
 
 
 
 
 
 
 
 
 
Risk-weighted assets
$
76,990

 
$
77,048

 
$
81,639

 
$
87,302

 
$
90,772

 
 
 
 
 
 
 
 
 
 
CECL FULLY PHASED-IN CAPITAL MEASURES
 
 
 
 
 
 
 
 
 
Tier 1 capital
$
12,891

 
$
12,527

 
$
12,405

 
$
13,064

 
$
13,155

Less: CECL transition adjustment
(2,656
)
 
(2,570
)
 
(2,417
)
 

 

Tier 1 capital (CECL fully phased-in)
$
10,235

 
$
9,957

 
$
9,988

 
$
13,064

 
$
13,155

Add: Allowance for credit losses
10,146

 
9,802

 
9,175

 
5,602

 
5,607

Tier 1 capital (CECL fully phased-in) + Reserves for credit losses
$
20,381

 
$
19,759

 
$
19,163

 
$
18,666

 
$
18,762

 
 
 
 
 
 
 
 
 
 
Risk-weighted assets
$
76,990

 
$
77,048

 
$
81,639

 
$
87,302

 
$
90,772

Less: CECL transition adjustment
(2,447
)
 
(2,361
)
 
(2,204
)
 

 

Risk-weighted assets (CECL fully phased-in)
$
74,543

 
$
74,687

 
$
79,435

 
$
87,302

 
$
90,772

 
 
 
 
 
 
 
 
 
 
TANGIBLE COMMON EQUITY PER SHARE
 
 
 
 
 
 
 
 
 
GAAP book value per share
$
19.47

 
$
19.13

 
$
19.27

 
$
23.31

 
$
23.13

Less: Goodwill
(1.85
)
 
(1.85
)
 
(1.85
)
 
(1.75
)
 
(1.65
)
Less: Intangible assets, net
(1.87
)
 
(2.00
)
 
(2.07
)
 
(2.06
)
 
(1.80
)
Tangible common equity per share
$
15.75

 
$
15.28

 
$
15.35

 
$
19.50

 
$
19.68

 
 
 
 
 
 
 
 
 
 
(1) Regulatory measures at September 30, 2020 are presented on an estimated basis.
(2) Capital ratios starting March 31, 2020 reflect election to delay for two years an estimate of CECL’s effect on regulatory capital in accordance with the interim final rule issued by U.S. banking agencies in March 2020


9



SYNCHRONY FINANCIAL
 
 
 
 
 
 
 
 
 
RECONCILIATION OF NON-GAAP MEASURES (Continued)
 
 
(unaudited, $ in millions, except per share statistics)
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
Sep 30,
2020
 
Jun 30,
2020
 
Mar 31,
2020
 
Dec 31,
2019
 
Sep 30,
2019
ALLOWANCE FOR LOAN LOSSES (1)
 
 
 
 
 
 
 
 
 
Allowance for credit losses
$
10,146

 
$
9,802

 
$
9,175

 
N/A

 
N/A

Less: Impact from CECL(2)
(3,671
)
 
(3,605
)
 
(3,122
)
 

 

Allowance for loan losses(1)
$
6,475

 
$
6,197

 
$
6,053

 
$
5,602

 
$
5,607

 
 
 
 
 
 
 
 
 
 
ALLOWANCE FOR LOAN LOSSES AS A % OF PERIOD-END LOAN RECEIVABLES
 
 
 
 
 
 
 
 
 
Allowance for credit losses as a % of period-end loan receivables
12.92
 %
 
12.52
 %
 
11.13
 %
 
N/A

 
N/A

Less: Impact from CECL(2)
(4.67
)%
 
(4.61
)%
 
(3.79
)%
 
%
 
%
Allowance for loan losses as a % of period-end loan receivables
8.25
 %
 
7.91
 %
 
7.34
 %
 
6.42
%
 
6.74
%
 
 
 
 
 
 
 
 
 
 
CORE PURCHASE VOLUME
 
 
 
 
 
 
 
 
 
Purchase Volume
$
36,013

 
$
31,155

 
$
32,042

 
$
40,212

 
$
38,395

Less: Walmart and Yamaha Purchase volume

 

 

 
(267
)
 
(2,381
)
Core Purchase volume
$
36,013

 
$
31,155

 
$
32,042

 
$
39,945

 
$
36,014

 
 
 
 
 
 
 
 
 
 
CORE LOAN RECEIVABLES
 
 
 
 
 
 
 
 
 
Loan receivables
$
78,521

 
$
78,313

 
$
82,469

 
$
87,215

 
$
83,207

Less: Walmart and Yamaha Loan receivables

 

 

 
(3
)
 
(872
)
Core Loan receivables
$
78,521

 
$
78,313

 
$
82,469

 
$
87,212

 
$
82,335

 
 
 
 
 
 
 
 
 
 
Retail Card Loan receivables
$
49,595

 
$
49,967

 
$
52,390

 
$
56,387

 
$
52,697

Less: Walmart Loan receivables

 

 

 

 
(112
)
Core Loan receivables
$
49,595

 
$
49,967

 
$
52,390

 
$
56,387

 
$
52,585

 
 
 
 
 
 
 
 
 
 
Payment Solutions Loan receivables
$
19,550

 
$
19,119

 
$
19,973

 
$
20,528

 
$
20,478

Less: Yamaha Loan receivables

 

 

 
(3
)
 
(760
)
Core Loan receivables
$
19,550

 
$
19,119

 
$
19,973

 
$
20,525

 
$
19,718

 
 
 
 
 
 
 
 
 
 
CORE AVERAGE ACTIVE ACCOUNTS (in thousands)
 
 
 
 
 
 
 
 
 
Average active accounts (in thousands)
64,270

 
64,836

 
72,078

 
73,734

 
76,695

Less: Walmart and Yamaha average Active accounts (in thousands)

 

 

 
(1,777
)
 
(7,001
)
Core Average active accounts (in thousands)
64,270

 
64,836

 
72,078

 
71,957

 
69,694

 
 
 
 
 
 
 
 
 
 
CORE INTEREST AND FEES ON LOANS
 
 
 
 
 
 
 
 
 
Interest and fees on loans
$
3,821

 
$
3,808

 
$
4,340

 
$
4,492

 
$
4,890

Less: Walmart and Yamaha Interest and fees on loans

 

 

 
(69
)
 
(531
)
Core Interest and fees on loans
$
3,821

 
$
3,808

 
$
4,340

 
$
4,423

 
$
4,359

 
 
 
 
 
 
 
 
 
 
(1) Beginning in 1Q'20, allowance for loan losses is calculated based upon accounting standards no longer effective, and as such is a Non-GAAP measure.
(2) Impact from CECL reflects the additional allowance for credit losses recorded in accordance with ASC 2016-13, as compared to the allowance for credit losses required had the prior accounting guidance been applied.


10