Document


SYNCHRONY FINANCIAL
FINANCIAL SUMMARY
(unaudited, in millions, except per share statistics)
	Quarter Ended														Six Months Ended
	Jun 30, 2021		Mar 31, 2021		Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		2Q'21 vs. 2Q'20				Jun 30, 2021		Jun 30, 2020		YTD'21 vs. YTD'20
EARNINGS
Net interest income	$	3,312	$	3,439	$	3,659	$	3,457	$	3,396	$	(84)	(2.5)	%	$	6,751	$	7,286	$	(535)	(7.3)	%
Retailer share arrangements	(1,006)		(989)		(1,047)		(899)		(773)		(233)		30.1	%	(1,995)		(1,699)		(296)		17.4	%

Provision for credit losses	(194)		334		750		1,210		1,673		(1,867)		(111.6)	%	140		3,350		(3,210)		(95.8)	%
Net interest income, after retailer share arrangements and provision for credit losses	2,500		2,116		1,862		1,348		950		1,550		163.2	%	4,616		2,237		2,379		106.3	%
Other income	89		131		82		131		95		(6)		(6.3)	%	220		192		28		14.6	%
Other expense	948		932		1,000		1,067		986		(38)		(3.9)	%	1,880		1,988		(108)		(5.4)	%
Earnings before provision for income taxes	1,641		1,315		944		412		59		1,582		NM		2,956		441		2,515		NM
Provision for income taxes	399		290		206		99		11		388		NM		689		107		582		NM
Net earnings	$	1,242	$	1,025	$	738	$	313	$	48	$	1,194	NM		$	2,267	$	334	$	1,933	NM
Net earnings available to common stockholders	$	1,232	$	1,014	$	728	$	303	$	37	$	1,195	NM		$	2,246	$	312	$	1,934	NM



COMMON SHARE STATISTICS
Basic EPS	$	2.13	$	1.74	$	1.25	$	0.52	$	0.06	$	2.07	NM		$	3.87	$	0.52	$	3.35	NM
Diluted EPS	$	2.12	$	1.73	$	1.24	$	0.52	$	0.06	$	2.06	NM		$	3.84	$	0.52	$	3.32	NM

Dividend declared per share	$	0.22	$	0.22	$	0.22	$	0.22	$	0.22	$	—	—	%	$	0.44	$	0.44	$	—	—	%
Common stock price	$	48.52	$	40.66	$	34.71	$	26.17	$	22.16	$	26.36	119.0	%	$	48.52	$	22.16	$	26.36	119.0	%
Book value per share	$	23.48	$	21.86	$	20.49	$	19.47	$	19.13	$	4.35	22.7	%	$	23.48	$	19.13	$	4.35	22.7	%
Tangible common equity per share(1)	$	19.64	$	17.95	$	16.72	$	15.75	$	15.28	$	4.36	28.5	%	$	19.64	$	15.28	$	4.36	28.5	%

Beginning common shares outstanding	581.1		584.0		583.8		583.7		583.2		(2.1)		(0.4)	%	584.0		615.9		(31.9)		(5.2)	%
Issuance of common shares	—		—		—		—		—		—		—	%	—		—		—		—	%
Stock-based compensation	1.0		2.2		0.2		0.1		0.5		0.5		100.0	%	3.2		1.4		1.8		128.6	%
Shares repurchased	(8.7)		(5.1)		—		—		—		(8.7)		NM		(13.8)		(33.6)		19.8		(58.9)	%
Ending common shares outstanding	573.4		581.1		584.0		583.8		583.7		(10.3)		(1.8)	%	573.4		583.7		(10.3)		(1.8)	%

Weighted average common shares outstanding	577.2		583.3		583.9		583.8		583.7		(6.5)		(1.1)	%	580.2		594.3		(14.1)		(2.4)	%
Weighted average common shares outstanding (fully diluted)	581.7		587.5		586.6		584.8		584.4		(2.7)		(0.5)	%	584.6		595.9		(11.3)		(1.9)	%

(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.


SYNCHRONY FINANCIAL
SELECTED METRICS
(unaudited, $ in millions)
	Quarter Ended																			Six Months Ended
	Jun 30, 2021			Mar 31, 2021			Dec 31, 2020			Sep 30, 2020			Jun 30, 2020			2Q'21 vs. 2Q'20				Jun 30, 2021			Jun 30, 2020			YTD'21 vs. YTD'20
PERFORMANCE METRICS
Return on assets(1)	5.3		%	4.3		%	3.1		%	1.3		%	0.2		%			5.1	%	4.8		%	0.7		%			4.1	%
Return on equity(2)	36.5		%	31.8		%	23.6		%	10.3		%	1.6		%			34.9	%	34.2		%	5.4		%			28.8	%
Return on tangible common equity(3)	46.3		%	40.8		%	30.4		%	13.1		%	1.6		%			44.7	%	43.6		%	6.7		%			36.9	%



Net interest margin(4)	13.78		%	13.98		%	14.64		%	13.80		%	13.53		%			0.25	%	13.88		%	14.35		%			(0.47)	%
Efficiency ratio(5)	39.6		%	36.1		%	37.1		%	39.7		%	36.3		%			3.3	%	37.8		%	34.4		%			3.4	%
Other expense as a % of average loan receivables, including held for sale	4.95		%	4.82		%	5.01		%	5.44		%	5.04		%			(0.09)	%	4.89		%	4.90		%			(0.01)	%
Effective income tax rate	24.3		%	22.1		%	21.8		%	24.0		%	18.6		%			5.7	%	23.3		%	24.3		%			(1.0)	%


CREDIT QUALITY METRICS
Net charge-offs as a % of average loan receivables, including held for sale	3.57		%	3.62		%	3.16		%	4.42		%	5.35		%			(1.78)	%	3.59		%	5.35		%			(1.76)	%
30+ days past due as a % of period-end loan receivables(6)	2.11		%	2.83		%	3.07		%	2.67		%	3.13		%			(1.02)	%	2.11		%	3.13		%			(1.02)	%
90+ days past due as a % of period-end loan receivables(6)	1.00		%	1.52		%	1.40		%	1.24		%	1.77		%			(0.77)	%	1.00		%	1.77		%			(0.77)	%
Net charge-offs	$	684		$	699		$	631		$	866		$	1,046		$	(362)	(34.6)	%	$	1,383		$	2,171		$	(788)	(36.3)	%
Loan receivables delinquent over 30 days(6)	$	1,653		$	2,175		$	2,514		$	2,100		$	2,453		$	(800)	(32.6)	%	$	1,653		$	2,453		$	(800)	(32.6)	%
Loan receivables delinquent over 90 days(6)	$	784		$	1,170		$	1,143		$	973		$	1,384		$	(600)	(43.4)	%	$	784		$	1,384		$	(600)	(43.4)	%

Allowance for credit losses (period-end)	$	9,023		$	9,901		$	10,265		$	10,146		$	9,802		$	(779)	(7.9)	%	$	9,023		$	9,802		$	(779)	(7.9)	%
Allowance coverage ratio(7)	11.51		%	12.88		%	12.54		%	12.92		%	12.52		%			(1.01)	%	11.51		%	12.52		%			(1.01)	%

BUSINESS METRICS
Purchase volume(8)(9)	$	42,121		$	34,749		$	39,874		$	36,013		$	31,155		$	10,966	35.2	%	$	76,870		$	63,197		$	13,673	21.6	%
Period-end loan receivables	$	78,374		$	76,858		$	81,867		$	78,521		$	78,313		$	61	0.1	%	$	78,374		$	78,313		$	61	0.1	%
Credit cards	$	74,429		$	73,244		$	78,455		$	75,204		$	75,353		$	(924)	(1.2)	%	$	74,429		$	75,353		$	(924)	(1.2)	%
Consumer installment loans	$	2,507		$	2,319		$	2,125		$	1,987		$	1,779		$	728	40.9	%	$	2,507		$	1,779		$	728	40.9	%
Commercial credit products	$	1,379		$	1,248		$	1,250		$	1,270		$	1,140		$	239	21.0	%	$	1,379		$	1,140		$	239	21.0	%
Other	$	59		$	47		$	37		$	60		$	41		$	18	43.9	%	$	59		$	41		$	18	43.9	%
Average loan receivables, including held for sale	$	76,821		$	78,358		$	79,452		$	78,005		$	78,697		$	(1,876)	(2.4)	%	$	77,585		$	81,563		$	(3,978)	(4.9)	%
Period-end active accounts (in thousands)(9)(10)	66,892			65,219			68,540			64,800			63,430			3,462		5.5	%	66,892			63,430			3,462		5.5	%
Average active accounts (in thousands)(9)(10)	65,810			66,280			66,261			64,270			64,836			974		1.5	%	66,163			68,401			(2,238)		(3.3)	%

LIQUIDITY
Liquid assets
Cash and equivalents	$	11,117		$	16,620		$	11,524		$	13,552		$	16,344		$	(5,227)	(32.0)	%	$	11,117		$	16,344		$	(5,227)	(32.0)	%
Total liquid assets	$	16,297		$	22,636		$	18,321		$	21,402		$	22,352		$	(6,055)	(27.1)	%	$	16,297		$	22,352		$	(6,055)	(27.1)	%
Undrawn credit facilities
Undrawn credit facilities	$	4,900		$	5,400		$	5,400		$	5,400		$	5,650		$	(750)	(13.3)	%	$	4,900		$	5,650		$	(750)	(13.3)	%
Total liquid assets and undrawn credit facilities	$	21,197		$	28,036		$	23,721		$	26,802		$	28,002		$	(6,805)	(24.3)	%	$	21,197		$	28,002		$	(6,805)	(24.3)	%
Liquid assets % of total assets	17.71		%	23.62		%	19.09		%	22.37		%	23.15		%			(5.44)	%	17.71		%	23.15		%			(5.44)	%
Liquid assets including undrawn credit facilities % of total assets	23.04		%	29.25		%	24.72		%	28.02		%	29.00		%			(5.96)	%	23.04		%	29.00		%			(5.96)	%



(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.


SYNCHRONY FINANCIAL
STATEMENTS OF EARNINGS
(unaudited, $ in millions)
	Quarter Ended														Six Months Ended
	Jun 30, 2021		Mar 31, 2021		Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		2Q'21 vs. 2Q'20				Jun 30, 2021		Jun 30, 2020		YTD'21 vs. YTD'20
Interest income:
Interest and fees on loans	$	3,567	$	3,732	$	3,981	$	3,821	$	3,808	$	(241)	(6.3)	%	$	7,299	$	8,148	$	(849)	(10.4)	%
Interest on cash and debt securities	11		10		12		16		22		(11)		(50.0)	%	21		89		(68)		(76.4)	%
Total interest income	3,578		3,742		3,993		3,837		3,830		(252)		(6.6)	%	7,320		8,237		(917)		(11.1)	%

Interest expense:
Interest on deposits	146		170		200		245		293		(147)		(50.2)	%	316		649		(333)		(51.3)	%
Interest on borrowings of consolidated securitization entities	44		51		52		53		59		(15)		(25.4)	%	95		132		(37)		(28.0)	%
Interest on senior unsecured notes	76		82		82		82		82		(6)		(7.3)	%	158		170		(12)		(7.1)	%

Total interest expense	266		303		334		380		434		(168)		(38.7)	%	569		951		(382)		(40.2)	%

Net interest income	3,312		3,439		3,659		3,457		3,396		(84)		(2.5)	%	6,751		7,286		(535)		(7.3)	%

Retailer share arrangements	(1,006)		(989)		(1,047)		(899)		(773)		(233)		30.1	%	(1,995)		(1,699)		(296)		17.4	%


Provision for credit losses	(194)		334		750		1,210		1,673		(1,867)		(111.6)	%	140		3,350		(3,210)		(95.8)	%
Net interest income, after retailer share arrangements and provision for credit losses	2,500		2,116		1,862		1,348		950		1,550		163.2	%	4,616		2,237		2,379		106.3	%

Other income:
Interchange revenue	223		171		185		172		134		89		66.4	%	394		295		99		33.6	%
Debt cancellation fees	66		69		72		68		69		(3)		(4.3)	%	135		138		(3)		(2.2)	%
Loyalty programs	(247)		(179)		(202)		(155)		(134)		(113)		84.3	%	(426)		(292)		(134)		45.9	%
Other	47		70		27		46		26		21		80.8	%	117		51		66		129.4	%
Total other income	89		131		82		131		95		(6)		(6.3)	%	220		192		28		14.6	%

Other expense:
Employee costs	359		364		347		382		327		32		9.8	%	723		651		72		11.1	%
Professional fees	189		190		186		187		189		—		—	%	379		386		(7)		(1.8)	%
Marketing and business development	114		95		139		107		91		23		25.3	%	209		202		7		3.5	%
Information processing	137		131		128		125		116		21		18.1	%	268		239		29		12.1	%
Other	149		152		200		266		263		(114)		(43.3)	%	301		510		(209)		(41.0)	%
Total other expense	948		932		1,000		1,067		986		(38)		(3.9)	%	1,880		1,988		(108)		(5.4)	%

Earnings before provision for income taxes	1,641		1,315		944		412		59		1,582		NM		2,956		441		2,515		NM
Provision for income taxes	399		290		206		99		11		388		NM		689		107		582		NM
Net earnings	$	1,242	$	1,025	$	738	$	313	$	48	$	1,194	NM		$	2,267	$	334	$	1,933	NM

Net earnings available to common stockholders	$	1,232	$	1,014	$	728	$	303	$	37	$	1,195	NM		$	2,246	$	312	$	1,934	NM


SYNCHRONY FINANCIAL
STATEMENTS OF FINANCIAL POSITION
(unaudited, $ in millions)
	Quarter Ended
	Jun 30, 2021		Mar 31, 2021		Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Jun 30, 2021 vs. Jun 30, 2020
Assets
Cash and equivalents	$	11,117	$	16,620	$	11,524	$	13,552	$	16,344	$	(5,227)	(32.0)	%
Debt securities	5,728		6,550		7,469		8,432		6,623		(895)		(13.5)	%
Loan receivables:
Unsecuritized loans held for investment	55,994		53,823		56,472		52,613		52,629		3,365		6.4	%
Restricted loans of consolidated securitization entities	22,380		23,035		25,395		25,908		25,684		(3,304)		(12.9)	%
Total loan receivables	78,374		76,858		81,867		78,521		78,313		61		0.1	%
Less: Allowance for credit losses	(9,023)		(9,901)		(10,265)		(10,146)		(9,802)		779		(7.9)	%
Loan receivables, net	69,351		66,957		71,602		68,375		68,511		840		1.2	%
Loan receivables held for sale	—		23		5		4		4		(4)		(100.0)	%
Goodwill	1,105		1,104		1,078		1,078		1,078		27		2.5	%
Intangible assets, net	1,098		1,169		1,125		1,091		1,166		(68)		(5.8)	%
Other assets	3,618		3,431		3,145		3,126		2,818		800		28.4	%
Total assets	$	92,017	$	95,854	$	95,948	$	95,658	$	96,544	$	(4,527)	(4.7)	%

Liabilities and Equity
Deposits:
Interest-bearing deposit accounts	$	59,500	$	62,419	$	62,469	$	63,195	$	63,857	$	(4,357)	(6.8)	%
Non-interest-bearing deposit accounts	341		342		313		298		291		50		17.2	%
Total deposits	59,841		62,761		62,782		63,493		64,148		(4,307)		(6.7)	%
Borrowings:
Borrowings of consolidated securitization entities	6,987		7,193		7,810		7,809		8,109		(1,122)		(13.8)	%

Senior unsecured notes	6,470		7,967		7,965		7,962		7,960		(1,490)		(18.7)	%

Total borrowings	13,457		15,160		15,775		15,771		16,069		(2,612)		(16.3)	%
Accrued expenses and other liabilities	4,522		4,494		4,690		4,295		4,428		94		2.1	%
Total liabilities	77,820		82,415		83,247		83,559		84,645		(6,825)		(8.1)	%
Equity:
Preferred stock	734		734		734		734		734		—		—	%
Common stock	1		1		1		1		1		—		—	%
Additional paid-in capital	9,620		9,592		9,570		9,552		9,532		88		0.9	%
Retained earnings	12,560		11,470		10,621		10,024		9,852		2,708		27.5	%
Accumulated other comprehensive income (loss)	(56)		(56)		(51)		(31)		(37)		(19)		51.4	%
Treasury stock	(8,662)		(8,302)		(8,174)		(8,181)		(8,183)		(479)		5.9	%
Total equity	14,197		13,439		12,701		12,099		11,899		2,298		19.3	%
Total liabilities and equity	$	92,017	$	95,854	$	95,948	$	95,658	$	96,544	$	(4,527)	(4.7)	%


SYNCHRONY FINANCIAL
AVERAGE BALANCES, NET INTEREST INCOME AND NET INTEREST MARGIN
(unaudited, $ in millions)

	Quarter Ended
	Jun 30, 2021						Mar 31, 2021						Dec 31, 2020						Sep 30, 2020						Jun 30, 2020
			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	$	13,584	$	4	0.12	%	$	14,610	$	4	0.11	%	$	11,244	$	4	0.14	%	$	13,664	$	4	0.12	%	$	15,413	$	3	0.08	%
Securities available for sale	5,988		7		0.47	%	6,772		6		0.36	%	8,706		8		0.37	%	7,984		12		0.60	%	6,804		19		1.12	%

Loan receivables, including held for sale:
Credit cards	72,989		3,484		19.15	%	74,865		3,657		19.81	%	76,039		3,908		20.45	%	74,798		3,752		19.96	%	75,942		3,740		19.81	%
Consumer installment loans	2,417		59		9.79	%	2,219		53		9.69	%	2,057		50		9.67	%	1,892		46		9.67	%	1,546		37		9.63	%
Commercial credit products	1,363		23		6.77	%	1,231		21		6.92	%	1,293		23		7.08	%	1,238		22		7.07	%	1,150		30		10.49	%
Other	52		1		NM		43		1		NM		63		—		—	%	77		1		NM		59		1		NM
Total loan receivables, including held for sale	76,821		3,567		18.62	%	78,358		3,732		19.32	%	79,452		3,981		19.93	%	78,005		3,821		19.49	%	78,697		3,808		19.46	%
Total interest-earning assets	96,393		3,578		14.89	%	99,740		3,742		15.22	%	99,402		3,993		15.98	%	99,653		3,837		15.32	%	100,914		3,830		15.26	%

Non-interest-earning assets:
Cash and due from banks	1,559						1,635						1,525						1,489						1,486
Allowance for credit losses	(9,801)						(10,225)						(10,190)						(9,823)						(9,221)
Other assets	5,238						5,305						5,228						5,021						4,779
Total non-interest-earning assets	(3,004)						(3,285)						(3,437)						(3,313)						(2,956)

Total assets	$	93,389					$	96,455					$	95,965					$	96,340					$	97,958

Liabilities
Interest-bearing liabilities:
Interest-bearing deposit accounts	$	60,761	$	146	0.96	%	$	62,724	$	170	1.10	%	$	62,800	$	200	1.27	%	$	63,569	$	245	1.53	%	$	64,298	$	293	1.83	%
Borrowings of consolidated securitization entities	7,149		44		2.47	%	7,694		51		2.69	%	7,809		52		2.65	%	8,057		53		2.62	%	8,863		59		2.68	%

Senior unsecured notes	7,276		76		4.19	%	7,965		82		4.18	%	7,963		82		4.10	%	7,960		82		4.10	%	7,958		82		4.14	%

Total interest-bearing liabilities	75,186		266		1.42	%	78,383		303		1.57	%	78,572		334		1.69	%	79,586		380		1.90	%	81,119		434		2.15	%

Non-interest-bearing liabilities
Non-interest-bearing deposit accounts	349						346						308						307						309
Other liabilities	4,199						4,655						4,663						4,308						4,349
Total non-interest-bearing liabilities	4,548						5,001						4,971						4,615						4,658

Total liabilities	79,734						83,384						83,543						84,201						85,777

Equity
Total equity	13,655						13,071						12,422						12,139						12,181

Total liabilities and equity	$	93,389					$	96,455					$	95,965					$	96,340					$	97,958
Net interest income			$	3,312					$	3,439					$	3,659					$	3,457					$	3,396

Interest rate spread(1)					13.47	%					13.65	%					14.29	%					13.42	%					13.11	%
Net interest margin(2)					13.78	%					13.98	%					14.64	%					13.80	%					13.53	%



(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.



SYNCHRONY FINANCIAL
AVERAGE BALANCES, NET INTEREST INCOME AND NET INTEREST MARGIN
(unaudited, $ in millions)

	Six Months Ended Jun 30, 2021						Six Months Ended Jun 30, 2020
			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	$	14,094	$	8	0.11	%	$	14,158	$	45	0.64	%
Securities available for sale	6,378		13		0.41	%	6,379		44		1.39	%

Loan receivables, including held for sale:
Credit cards	73,921		7,141		19.48	%	78,830		8,012		20.44	%
Consumer installment loans	2,319		112		9.74	%	1,489		72		9.72	%
Commercial credit products	1,297		44		6.84	%	1,196		63		10.59	%
Other	48		2		8.40	%	48		1		4.19	%
Total loan receivables, including held for sale	77,585		7,299		18.97	%	81,563		8,148		20.09	%
Total interest-earning assets	98,057		7,320		15.05	%	102,100		8,237		16.22	%

Non-interest-earning assets:
Cash and due from banks	1,597						1,468
Allowance for loan losses	(10,012)						(8,965)
Other assets	5,272						4,737
Total non-interest-earning assets	(3,143)						(2,760)

Total assets	$	94,914					$	99,340

Liabilities
Interest-bearing liabilities:
Interest-bearing deposit accounts	$	61,737	$	316	1.03	%	$	64,332	$	649	2.03	%
Borrowings of consolidated securitization entities	7,420		95		2.58	%	9,425		132		2.82	%

Senior unsecured notes	7,619		158		4.18	%	8,382		170		4.08	%

Total interest-bearing liabilities	76,776		569		1.49	%	82,139		951		2.33	%

Non-interest-bearing liabilities
Non-interest-bearing deposit accounts	348						304
Other liabilities	4,425						4,511
Total non-interest-bearing liabilities	4,773						4,815

Total liabilities	81,549						86,954

Equity
Total equity	13,365						12,386

Total liabilities and equity	$	94,914					$	99,340
Net interest income			$	6,751					$	7,286

Interest rate spread(1)					13.56	%					13.89	%
Net interest margin(2)					13.88	%					14.35	%

(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.


SYNCHRONY FINANCIAL
BALANCE SHEET STATISTICS
(unaudited, $ in millions, except per share statistics)

	Quarter Ended
	Jun 30, 2021			Mar 31, 2021			Dec 31, 2020			Sep 30, 2020			Jun 30, 2020			Jun 30, 2021 vs. Jun 30, 2020
BALANCE SHEET STATISTICS
Total common equity	$	13,463		$	12,705		$	11,967		$	11,365		$	11,165		$	2,298	20.6	%
Total common equity as a % of total assets	14.63		%	13.25		%	12.47		%	11.88		%	11.56		%			3.07	%

Tangible assets	$	89,814		$	93,581		$	93,745		$	93,489		$	94,300		$	(4,486)	(4.8)	%
Tangible common equity(1)	$	11,260		$	10,432		$	9,764		$	9,196		$	8,921		$	2,339	26.2	%
Tangible common equity as a % of tangible assets(1)	12.54		%	11.15		%	10.42		%	9.84		%	9.46		%			3.08	%
Tangible common equity per share(1)	$	19.64		$	17.95		$	16.72		$	15.75		$	15.28		$	4.36	28.5	%

REGULATORY CAPITAL RATIOS(2)(3)
	Basel III - CECL Transition
Total risk-based capital ratio(4)	20.1		%	19.7		%	18.1		%	18.1		%	17.6		%
Tier 1 risk-based capital ratio(5)	18.7		%	18.3		%	16.8		%	16.7		%	16.3		%

Tier 1 leverage ratio(6)	15.6		%	14.5		%	14.0		%	13.3		%	12.7		%
Common equity Tier 1 capital ratio	17.8		%	17.4		%	15.9		%	15.8		%	15.3		%



(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 June 30, 2021 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.


SYNCHRONY FINANCIAL
PLATFORM RESULTS
(unaudited, $ in millions)
	Quarter Ended														Six Months Ended
	Jun 30, 2021		Mar 31, 2021		Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		2Q'21 vs. 2Q'20				Jun 30, 2021		Jun 30, 2020		YTD'21 vs. YTD'20
HOME & AUTO
Purchase volume(1)	$	12,209	$	9,915	$	10,327	$	10,653	$	9,729	$	2,480	25.5	%	$	22,124	$	18,833	$	3,291	17.5	%
Period-end loan receivables	$	26,111	$	25,456	$	26,494	$	26,202	$	25,875	$	236	0.9	%	$	26,111	$	25,875	$	236	0.9	%
Average loan receivables, including held for sale	$	25,624	$	25,785	$	26,214	$	25,908	$	25,792	$	(168)	(0.7)	%	$	25,704	$	26,396	$	(692)	(2.6)	%
Average active accounts (in thousands)(3)	17,958		17,808		18,119		18,127		18,213		(255)		(1.4)	%	17,906		18,465		(559)		(3.0)	%

Interest and fees on loans	$	1,014	$	1,059	$	1,147	$	1,114	$	1,079	$	(65)	(6.0)	%	$	2,073	$	2,250	$	(177)	(7.9)	%
Other income	$	15	$	15	$	12	$	14	$	20	$	(5)	(25.0)	%	$	30	$	32	$	(2)	(6.3)	%




DIGITAL
Purchase volume(1)	$	10,930	$	9,340	$	11,005	$	9,038	$	8,439	$	2,491	29.5	%	$	20,270	$	15,833	$	4,437	28.0	%
Period-end loan receivables	$	19,233	$	18,907	$	20,427	$	18,922	$	18,945	$	288	1.5	%	$	19,233	$	18,945	$	288	1.5	%
Average loan receivables, including held for sale	$	18,783	$	19,437	$	19,392	$	18,807	$	19,062	$	(279)	(1.5)	%	$	19,108	$	19,408	$	(300)	(1.5)	%
Average active accounts (in thousands)(3)	17,258		17,318		16,898		16,440		16,414		844		5.1	%	17,298		16,462		836		5.1	%

Interest and fees on loans	$	891	$	903	$	976	$	915	$	913	$	(22)	(2.4)	%	$	1,794	$	1,910	$	(116)	(6.1)	%
Other income	$	(28)	$	(12)	$	(26)	$	(16)	$	(8)	$	(20)	250.0	%	$	(40)	$	(12)	$	(28)	233.3	%




DIVERSIFIED & VALUE
Purchase volume(1)	$	11,618	$	9,220	$	11,267	$	9,634	$	7,683	$	3,935	51.2	%	$	20,838	$	17,084	$	3,754	22.0	%
Period-end loan receivables	$	14,357	$	14,217	$	15,761	$	14,825	$	15,177	$	(820)	(5.4)	%	$	14,357	$	15,177	$	(820)	(5.4)	%
Average loan receivables, including held for sale	$	14,101	$	14,574	$	15,024	$	14,919	$	15,425	$	(1,324)	(8.6)	%	$	14,336	$	16,485	$	(2,149)	(13.0)	%
Average active accounts (in thousands)(3)	17,301		17,457		17,324		16,307		16,626		675		4.1	%	17,446		18,806		(1,360)		(7.2)	%

Interest and fees on loans	$	729	$	789	$	822	$	809	$	849	$	(120)	(14.1)	%	$	1,518	$	1,897	$	(379)	(20.0)	%
Other income	$	(2)	$	5	$	20	$	38	$	17	$	(19)	(111.8)	%	$	3	$	32	$	(29)	(90.6)	%




HEALTH & WELLNESS
Purchase volume(1)	$	2,988	$	2,648	$	2,676	$	2,738	$	1,952	$	1,036	53.1	%	$	5,636	$	4,611	$	1,025	22.2	%
Period-end loan receivables	$	9,515	$	9,317	$	9,580	$	9,368	$	9,222	$	293	3.2	%	$	9,515	$	9,222	$	293	3.2	%
Average loan receivables, including held for sale	$	9,334	$	9,442	$	9,476	$	9,245	$	9,387	$	(53)	(0.6)	%	$	9,387	$	9,823	$	(436)	(4.4)	%
Average active accounts (in thousands)(3)	5,585		5,706		5,724		5,708		5,966		(381)		(6.4)	%	5,642		6,153		(511)		(8.3)	%

Interest and fees on loans	$	523	$	558	$	589	$	552	$	535	$	(12)	(2.2)	%	$	1,081	$	1,132	$	(51)	(4.5)	%
Other income	$	36	$	40	$	27	$	32	$	23	$	13	56.5	%	$	76	$	48	$	28	58.3	%


LIFESTYLE
Purchase volume(1)	$	1,405	$	1,154	$	1,383	$	1,267	$	1,286	$	119	9.3	%	$	2,559	$	2,283	$	276	12.1	%
Period-end loan receivables	$	5,158	$	4,988	$	5,098	$	4,842	$	4,718	$	440	9.3	%	$	5,158	$	4,718	$	440	9.3	%
Average loan receivables, including held for sale	$	5,050	$	5,003	$	4,920	$	4,771	$	4,551	$	499	11.0	%	$	5,027	$	4,607	$	420	9.1	%
Average active accounts (in thousands)(3)	2,442		2,573		2,536		2,404		2,462		(20)		(0.8)	%	2,510		2,634		(124)		(4.7)	%

Interest and fees on loans	$	182	$	181	$	187	$	180	$	172	$	10	5.8	%	$	363	$	367	$	(4)	(1.1)	%
Other income	$	6	$	5	$	6	$	5	$	4	$	2	50.0	%	$	11	$	9	$	2	22.2	%


CORP, OTHER(4)
Purchase volume(1)(2)	$	2,971	$	2,472	$	3,216	$	2,683	$	2,066	$	905	43.8	%	$	5,443	$	4,553	$	890	19.5	%
Period-end loan receivables	$	4,000	$	3,973	$	4,507	$	4,362	$	4,376	$	(376)	(8.6)	%	$	4,000	$	4,376	$	(376)	(8.6)	%
Average loan receivables, including held for sale	$	3,929	$	4,117	$	4,426	$	4,355	$	4,480	$	(551)	(12.3)	%	$	4,023	$	4,844	$	(821)	(16.9)	%
Average active accounts (in thousands)(2)(3)	5,266		5,418		5,660		5,284		5,155		111		2.2	%	5,361		5,881		(520)		(8.8)	%

Interest and fees on loans	$	228	$	242	$	260	$	251	$	260	$	(32)	(12.3)	%	$	470	$	592	$	(122)	(20.6)	%
Other income	$	62	$	78	$	43	$	58	$	39	$	23	59.0	%	$	140	$	83	$	57	68.7	%


TOTAL SYF
Purchase volume(1)(2)	$	42,121	$	34,749	$	39,874	$	36,013	$	31,155	$	10,966	35.2	%	$	76,870	$	63,197	$	13,673	21.6	%
Period-end loan receivables	$	78,374	$	76,858	$	81,867	$	78,521	$	78,313	$	61	0.1	%	$	78,374	$	78,313	$	61	0.1	%
Average loan receivables, including held for sale	$	76,821	$	78,358	$	79,452	$	78,005	$	78,697	$	(1,876)	(2.4)	%	$	77,585	$	81,563	$	(3,978)	(4.9)	%
Average active accounts (in thousands)(2)(3)	65,810		66,280		66,261		64,270		64,836		974		1.5	%	66,163		68,401		(2,238)		(3.3)	%

Interest and fees on loans	$	3,567	$	3,732	$	3,981	$	3,821	$	3,808	$	(241)	(6.3)	%	$	7,299	$	8,148	$	(849)	(10.4)	%
Other income	$	89	$	131	$	82	$	131	$	95	$	(6)	(6.3)	%	$	220	$	192	$	28	14.6	%



(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.
(4) Includes activity and balances associated with our program agreement with GAP Inc. which is scheduled to expire in April 2022.


SYNCHRONY FINANCIAL
RECONCILIATION OF NON-GAAP MEASURES AND CALCULATIONS OF REGULATORY MEASURES(1)
(unaudited, $ in millions, except per share statistics)
	Quarter Ended
	Jun 30, 2021		Mar 31, 2021		Dec 31, 2020		Sep 30, 2020		Jun 30, 2020
COMMON EQUITY AND REGULATORY CAPITAL MEASURES(2)
GAAP Total equity	$	14,197	$	13,439	$	12,701	$	12,099	$	11,899
Less: Preferred stock	(734)		(734)		(734)		(734)		(734)
Less: Goodwill	(1,105)		(1,104)		(1,078)		(1,078)		(1,078)
Less: Intangible assets, net	(1,098)		(1,169)		(1,125)		(1,091)		(1,166)
Tangible common equity	$	11,260	$	10,432	$	9,764	$	9,196	$	8,921
Add: CECL transition amount	2,376		2,595		2,686		2,656		2,570



Adjustments for certain deferred tax liabilities and certain items in accumulated comprehensive income (loss)	301		354		341		305		302
Common equity Tier 1	$	13,937	$	13,381	$	12,791	$	12,157	$	11,793
Preferred stock	734		734		734		734		734
Tier 1 capital	$	14,671	$	14,115	$	13,525	$	12,891	$	12,527

Add: Allowance for credit losses includible in risk-based capital	1,039		1,031		1,079		1,034		1,031
Total Risk-based capital	$	15,710	$	15,146	$	14,604	$	13,925	$	13,558

ASSET MEASURES(2)
Total average assets	$	93,389	$	96,455	$	95,965	$	96,340	$	97,958
Adjustments for:
Add: CECL transition amount	2,376		2,595		2,686		2,656		2,570
Disallowed goodwill and other disallowed intangible assets (net of related deferred tax liabilities) and other	(1,965)		(1,987)		(1,924)		(1,906)		(1,980)

Total assets for leverage purposes	$	93,800	$	97,063	$	96,727	$	97,090	$	98,548


Risk-weighted assets	$	78,281	$	76,965	$	80,561	$	76,990	$	77,048

CECL FULLY PHASED-IN CAPITAL MEASURES
Tier 1 capital	$	14,671	$	14,115	$	13,525	$	12,891	$	12,527
Less: CECL transition adjustment	(2,376)		(2,595)		(2,686)		(2,656)		(2,570)
Tier 1 capital (CECL fully phased-in)	$	12,295	$	11,520	$	10,839	$	10,235	$	9,957
Add: Allowance for credit losses	9,023		9,901		10,265		10,146		9,802
Tier 1 capital (CECL fully phased-in) + Reserves for credit losses	$	21,318	$	21,421	$	21,104	$	20,381	$	19,759

Risk-weighted assets	$	78,281	$	76,965	$	80,561	$	76,990	$	77,048
Less: CECL transition adjustment	(2,166)		(2,386)		(2,477)		(2,447)		(2,361)
Risk-weighted assets (CECL fully phased-in)	$	76,115	$	74,579	$	78,084	$	74,543	$	74,687

TANGIBLE COMMON EQUITY PER SHARE
GAAP book value per share	$	23.48	$	21.86	$	20.49	$	19.47	$	19.13
Less: Goodwill	(1.93)		(1.90)		(1.85)		(1.85)		(1.85)
Less: Intangible assets, net	(1.91)		(2.01)		(1.92)		(1.87)		(2.00)
Tangible common equity per share	$	19.64	$	17.95	$	16.72	$	15.75	$	15.28

(1) Regulatory measures at June 30, 2021 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.