Document


SYNCHRONY FINANCIAL
FINANCIAL SUMMARY
(unaudited, in millions, except per share statistics)
	Quarter Ended
	Mar 31, 2024		Dec 31, 2023		Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		1Q'24 vs. 1Q'23
EARNINGS
Net interest income	$	4,405	$	4,466	$	4,362	$	4,120	$	4,051	$	354	8.7	%
Retailer share arrangements	(764)		(878)		(979)		(887)		(917)		153		(16.7)	%
Other income	1,157		71		92		61		65		1,092		NM
Net revenue	4,798		3,659		3,475		3,294		3,199		1,599		50.0	%
Provision for credit losses	1,884		1,804		1,488		1,383		1,290		594		46.0	%
Other expense	1,206		1,316		1,154		1,169		1,119		87		7.8	%
Earnings before provision for income taxes	1,708		539		833		742		790		918		116.2	%
Provision for income taxes	415		99		205		173		189		226		119.6	%
Net earnings	$	1,293	$	440	$	628	$	569	$	601	$	692	115.1	%
Net earnings available to common stockholders	$	1,282	$	429	$	618	$	559	$	590	$	692	117.3	%



COMMON SHARE STATISTICS
Basic EPS	$	3.17	$	1.04	$	1.49	$	1.32	$	1.36	$	1.81	133.1	%
Diluted EPS	$	3.14	$	1.03	$	1.48	$	1.32	$	1.35	$	1.79	132.6	%

Dividend declared per share	$	0.25	$	0.25	$	0.25	$	0.23	$	0.23	$	0.02	8.7	%
Common stock price	$	43.12	$	38.19	$	30.57	$	33.92	$	29.08	$	14.04	48.3	%
Book value per share	$	35.03	$	32.36	$	31.50	$	30.25	$	29.08	$	5.95	20.5	%
Tangible common equity per share(1)	$	30.36	$	27.59	$	27.18	$	25.89	$	24.71	$	5.65	22.9	%

Beginning common shares outstanding	406.9		413.8		418.1		428.4		438.2		(31.3)		(7.1)	%
Issuance of common shares	—		—		—		—		—		—		NM
Stock-based compensation	2.0		0.4		0.2		0.2		1.5		0.5		33.3	%
Shares repurchased	(7.5)		(7.3)		(4.5)		(10.5)		(11.3)		3.8		(33.6)	%
Ending common shares outstanding	401.4		406.9		413.8		418.1		428.4		(27.0)		(6.3)	%

Weighted average common shares outstanding	404.7		411.9		416.0		422.7		434.4		(29.7)		(6.8)	%
Weighted average common shares outstanding (fully diluted)	408.2		414.6		418.4		424.2		437.2		(29.0)		(6.6)	%

(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.


SYNCHRONY FINANCIAL
SELECTED METRICS
(unaudited, $ in millions)
	Quarter Ended
	Mar 31, 2024			Dec 31, 2023			Sep 30, 2023			Jun 30, 2023			Mar 31, 2023			1Q'24 vs. 1Q'23
PERFORMANCE METRICS
Return on assets(1)	4.4		%	1.5		%	2.3		%	2.1		%	2.3		%			2.1	%
Return on equity(2)	35.6		%	12.4		%	18.1		%	17.0		%	18.2		%			17.4	%
Return on tangible common equity(3)	43.6		%	14.7		%	21.9		%	20.6		%	22.1		%			21.5	%

																		—	%
																		—	%
Net interest margin(4)	14.55		%	15.10		%	15.36		%	14.94		%	15.22		%			(0.67)	%
Net revenue as a % of average loan receivables, including held for sale	19.11		%	14.56		%	14.33		%	14.29		%	14.29		%			4.82	%
Efficiency ratio(5)	25.1		%	36.0		%	33.2		%	35.5		%	35.0		%			(9.9)	%
Other expense as a % of average loan receivables, including held for sale	4.80		%	5.24		%	4.76		%	5.07		%	5.00		%			(0.20)	%
Effective income tax rate	24.3		%	18.4		%	24.6		%	23.3		%	23.9		%			0.4	%


CREDIT QUALITY METRICS
Net charge-offs as a % of average loan receivables, including held for sale	6.31		%	5.58		%	4.60		%	4.75		%	4.49		%			1.82	%
30+ days past due as a % of period-end loan receivables(6)	4.74		%	4.74		%	4.40		%	3.84		%	3.81		%			0.93	%
90+ days past due as a % of period-end loan receivables(6)	2.42		%	2.28		%	2.06		%	1.77		%	1.87		%			0.55	%
Net charge-offs	$	1,585		$	1,402		$	1,116		$	1,096		$	1,006		$	579	57.6	%
Loan receivables delinquent over 30 days(6)	$	4,820		$	4,885		$	4,304		$	3,641		$	3,474		$	1,346	38.7	%
Loan receivables delinquent over 90 days(6)	$	2,459		$	2,353		$	2,020		$	1,677		$	1,705		$	754	44.2	%

Allowance for credit losses (period-end)	$	10,905		$	10,571		$	10,176		$	9,804		$	9,517		$	1,388	14.6	%
Allowance coverage ratio(7)	10.72		%	10.26		%	10.40		%	10.34		%	10.44		%			0.28	%

BUSINESS METRICS
Purchase volume(8)	$	42,387		$	49,339		$	47,006		$	47,276		$	41,557		$	830	2.0	%
Period-end loan receivables	$	101,733		$	102,988		$	97,873		$	94,801		$	91,129		$	10,604	11.6	%
Credit cards	$	93,736		$	97,043		$	92,078		$	89,299		$	86,113		$	7,623	8.9	%
Consumer installment loans	$	5,957		$	3,977		$	3,784		$	3,548		$	3,204		$	2,753	85.9	%
Commercial credit products	$	1,912		$	1,839		$	1,879		$	1,826		$	1,690		$	222	13.1	%
Other	$	128		$	129		$	132		$	128		$	122		$	6	4.9	%
Average loan receivables, including held for sale	$	100,957		$	99,683		$	96,230		$	92,489		$	90,815		$	10,142	11.2	%
Period-end active accounts (in thousands)(9)	70,754			73,484			70,137			70,269			68,589			2,165		3.2	%
Average active accounts (in thousands)(9)	71,667			71,526			70,308			69,517			69,494			2,173		3.1	%

LIQUIDITY
Liquid assets
Cash and equivalents	$	20,021		$	14,259		$	15,643		$	12,706		$	15,303		$	4,718	30.8	%
Total liquid assets	$	21,929		$	16,808		$	17,598		$	16,448		$	18,778		$	3,151	16.8	%
Undrawn credit facilities
Undrawn credit facilities	$	2,950		$	2,950		$	2,950		$	2,950		$	2,950		$	—	—	%
Total liquid assets and undrawn credit facilities(10)	$	24,879		$	19,758		$	20,548		$	19,398		$	21,728		$	3,151	14.5	%
Liquid assets % of total assets	18.10		%	14.31		%	15.58		%	15.13		%	17.41		%			0.69	%
Liquid assets including undrawn credit facilities % of total assets	20.53		%	16.82		%	18.19		%	17.85		%	20.15		%			0.38	%



(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) Active accounts represent credit card or installment loan accounts on which there has been a purchase, payment or outstanding balance in the current month.
(10) Excludes available borrowing capacity related to unencumbered assets.


SYNCHRONY FINANCIAL
STATEMENTS OF EARNINGS
(unaudited, $ in millions)
	Quarter Ended
	Mar 31, 2024		Dec 31, 2023		Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		1Q'24 vs. 1Q'23
Interest income:
Interest and fees on loans	$	5,293	$	5,323	$	5,151	$	4,812	$	4,616	$	677	14.7	%
Interest on cash and debt securities	275		226		203		209		170		105		61.8	%
Total interest income	5,568		5,549		5,354		5,021		4,786		782		16.3	%

Interest expense:
Interest on deposits	954		878		800		717		557		397		71.3	%
Interest on borrowings of consolidated securitization entities	105		99		86		78		77		28		36.4	%
Interest on senior unsecured notes	104		106		106		106		101		3		3.0	%

Total interest expense	1,163		1,083		992		901		735		428		58.2	%

Net interest income	4,405		4,466		4,362		4,120		4,051		354		8.7	%

Retailer share arrangements	(764)		(878)		(979)		(887)		(917)		153		(16.7)	%


Provision for credit losses	1,884		1,804		1,488		1,383		1,290		594		46.0	%
Net interest income, after retailer share arrangements and provision for credit losses	1,757		1,784		1,895		1,850		1,844		(87)		(4.7)	%

Other income:
Interchange revenue	241		270		267		262		232		9		3.9	%
Protection product revenue	141		139		131		125		115		26		22.6	%
Loyalty programs	(319)		(369)		(358)		(345)		(298)		(21)		7.0	%
Other	1,094		31		52		19		16		1,078		NM
Total other income	1,157		71		92		61		65		1,092		NM

Other expense:
Employee costs	496		538		444		451		451		45		10.0	%
Professional fees	220		228		219		209		186		34		18.3	%
Marketing and business development	125		138		125		133		131		(6)		(4.6)	%
Information processing	186		190		177		179		166		20		12.0	%
Other	179		222		189		197		185		(6)		(3.2)	%
Total other expense	1,206		1,316		1,154		1,169		1,119		87		7.8	%

Earnings before provision for income taxes	1,708		539		833		742		790		918		116.2	%
Provision for income taxes	415		99		205		173		189		226		119.6	%
Net earnings	$	1,293	$	440	$	628	$	569	$	601	$	692	115.1	%

Net earnings available to common stockholders	$	1,282	$	429	$	618	$	559	$	590	$	692	117.3	%


SYNCHRONY FINANCIAL
STATEMENTS OF FINANCIAL POSITION
(unaudited, $ in millions)
	Quarter Ended
	Mar 31, 2024		Dec 31, 2023		Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Mar 31, 2024 vs. Mar 31, 2023
Assets
Cash and equivalents	$	20,021	$	14,259	$	15,643	$	12,706	$	15,303	$	4,718	30.8	%
Debt securities	3,005		3,799		2,882		4,294		4,008		(1,003)		(25.0)	%
Loan receivables:
Unsecuritized loans held for investment	81,642		81,554		78,470		75,532		72,079		9,563		13.3	%
Restricted loans of consolidated securitization entities	20,091		21,434		19,403		19,269		19,050		1,041		5.5	%
Total loan receivables	101,733		102,988		97,873		94,801		91,129		10,604		11.6	%
Less: Allowance for credit losses	(10,905)		(10,571)		(10,176)		(9,804)		(9,517)		(1,388)		14.6	%
Loan receivables, net	90,828		92,417		87,697		84,997		81,612		9,216		11.3	%

Goodwill	1,073		1,018		1,105		1,105		1,105		(32)		(2.9)	%
Intangible assets, net	800		815		680		717		768		32		4.2	%
Other assets	5,446		4,915		4,932		4,878		5,057		389		7.7	%
Assets held for sale	—		256		—		—		—		—		NM
Total assets	$	121,173	$	117,479	$	112,939	$	108,697	$	107,853	$	13,320	12.4	%

Liabilities and Equity
Deposits:
Interest-bearing deposit accounts	$	83,160	$	80,789	$	77,669	$	75,344	$	74,008	$	9,152	12.4	%
Non-interest-bearing deposit accounts	394		364		397		421		417		(23)		(5.5)	%
Total deposits	83,554		81,153		78,066		75,765		74,425		9,129		12.3	%
Borrowings:
Borrowings of consolidated securitization entities	8,016		7,267		6,519		5,522		6,228		1,788		28.7	%

Senior and Subordinated unsecured notes	8,117		8,715		8,712		8,709		8,706		(589)		(6.8)	%

Total borrowings	16,133		15,982		15,231		14,231		14,934		1,199		8.0	%
Accrued expenses and other liabilities	6,204		6,334		5,875		5,321		5,301		903		17.0	%
Liabilities held for sale	—		107		—		—		—		—		NM
Total liabilities	105,891		103,576		99,172		95,317		94,660		11,231		11.9	%
Equity:
Preferred stock	1,222		734		734		734		734		488		66.5	%
Common stock	1		1		1		1		1		—		—	%
Additional paid-in capital	9,768		9,775		9,750		9,727		9,705		63		0.6	%
Retained earnings	19,790		18,662		18,338		17,828		17,369		2,421		13.9	%
Accumulated other comprehensive income (loss)	(69)		(68)		(96)		(96)		(102)		33		(32.4)	%
Treasury stock	(15,430)		(15,201)		(14,960)		(14,814)		(14,514)		(916)		6.3	%
Total equity	15,282		13,903		13,767		13,380		13,193		2,089		15.8	%
Total liabilities and equity	$	121,173	$	117,479	$	112,939	$	108,697	$	107,853	$	13,320	12.4	%


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

	Quarter Ended
	Mar 31, 2024						Dec 31, 2023						Sep 30, 2023						Jun 30, 2023						Mar 31, 2023
			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	$	17,405	$	236	5.45	%	$	13,762	$	188	5.42	%	$	12,753	$	172	5.35	%	$	14,198	$	178	5.03	%	$	12,365	$	140	4.59	%
Securities available for sale	3,432		39		4.57	%	3,895		38		3.87	%	3,706		31		3.32	%	3,948		31		3.15	%	4,772		30		2.55	%

Loan receivables, including held for sale:
Credit cards	94,216		5,096		21.75	%	93,744		5,162		21.85	%	90,587		5,003		21.91	%	87,199		4,679		21.52	%	85,904		4,497		21.23	%
Consumer installment loans	4,734		149		12.66	%	3,875		116		11.88	%	3,656		108		11.72	%	3,359		94		11.22	%	3,103		83		10.85	%
Commercial credit products	1,878		45		9.64	%	1,934		42		8.62	%	1,861		38		8.10	%	1,808		36		7.99	%	1,697		34		8.13	%
Other	129		3		9.35	%	130		3		9.16	%	126		2		6.30	%	123		3		9.78	%	111		2		7.31	%
Total loan receivables, including held for sale	100,957		5,293		21.09	%	99,683		5,323		21.19	%	96,230		5,151		21.24	%	92,489		4,812		20.87	%	90,815		4,616		20.61	%
Total interest-earning assets	121,794		5,568		18.39	%	117,340		5,549		18.76	%	112,689		5,354		18.85	%	110,635		5,021		18.20	%	107,952		4,786		17.98	%

Non-interest-earning assets:
Cash and due from banks	944						886						964						976						1,024
Allowance for credit losses	(10,677)						(10,243)						(9,847)						(9,540)						(9,262)
Other assets	6,973						6,616						6,529						6,330						6,128
Total non-interest-earning assets	(2,760)						(2,741)						(2,354)						(2,234)						(2,110)

Total assets	$	119,034					$	114,599					$	110,335					$	108,401					$	105,842

Liabilities
Interest-bearing liabilities:
Interest-bearing deposit accounts	$	82,598	$	954	4.65	%	$	78,892	$	878	4.42	%	$	75,952	$	800	4.18	%	$	74,812	$	717	3.84	%	$	72,216	$	557	3.13	%
Borrowings of consolidated securitization entities	7,383		105		5.72	%	6,903		99		5.69	%	6,096		86		5.60	%	5,863		78		5.34	%	6,229		77		5.01	%

Senior and Subordinated unsecured notes	8,630		104		4.85	%	8,712		106		4.83	%	8,710		106		4.83	%	8,707		106		4.88	%	8,442		101		4.85	%

Total interest-bearing liabilities	98,611		1,163		4.74	%	94,507		1,083		4.55	%	90,758		992		4.34	%	89,382		901		4.04	%	86,887		735		3.43	%

Non-interest-bearing liabilities
Non-interest-bearing deposit accounts	390						379						401						420						411
Other liabilities	5,419						5,652						5,418						5,164						5,130
Total non-interest-bearing liabilities	5,809						6,031						5,819						5,584						5,541

Total liabilities	104,420						100,538						96,577						94,966						92,428

Equity
Total equity	14,614						14,061						13,758						13,435						13,414

Total liabilities and equity	$	119,034					$	114,599					$	110,335					$	108,401					$	105,842
Net interest income			$	4,405					$	4,466					$	4,362					$	4,120					$	4,051

Interest rate spread(1)					13.64	%					14.22	%					14.51	%					14.16	%					14.55	%
Net interest margin(2)					14.55	%					15.10	%					15.36	%					14.94	%					15.22	%



(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
	Mar 31, 2024			Dec 31, 2023			Sep 30, 2023			Jun 30, 2023			Mar 31, 2023			Mar 31, 2024 vs. Mar 31, 2023
BALANCE SHEET STATISTICS
Total common equity	$	14,060		$	13,169		$	13,033		$	12,646		$	12,459		$	1,601	12.9	%
Total common equity as a % of total assets	11.60		%	11.21		%	11.54		%	11.63		%	11.55		%			0.05	%

Tangible assets	$	119,300		$	115,535		$	111,154		$	106,875		$	105,980		$	13,320	12.6	%
Tangible common equity(1)	$	12,187		$	11,225		$	11,248		$	10,824		$	10,586		$	1,601	15.1	%
Tangible common equity as a % of tangible assets(1)	10.22		%	9.72		%	10.12		%	10.13		%	9.99		%			0.23	%
Tangible common equity per share(1)	$	30.36		$	27.59		$	27.18		$	25.89		$	24.71		$	5.65	22.9	%

REGULATORY CAPITAL RATIOS(2)(3)
	Basel III - CECL Transition
Total risk-based capital ratio(4)	15.8		%	14.9		%	15.7		%	15.7		%	15.9		%
Tier 1 risk-based capital ratio(5)	13.8		%	12.9		%	13.6		%	13.6		%	13.8		%

Tier 1 leverage ratio(6)	12.0		%	11.7		%	12.2		%	12.0		%	12.1		%
Common equity Tier 1 capital ratio	12.6		%	12.2		%	12.8		%	12.8		%	13.0		%



(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 ratios at March 31, 2024 are preliminary and therefore subject to change.
(3) Capital ratios reflect the phase-in of an estimate of CECL’s effect on regulatory capital over a three-year transitional period beginning in the first quarter of 2022 through 2024. Capital ratios for 2024 and 2023 reflect 75% and 50%, respectively, of the phase-in of CECL effects.
(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.


SYNCHRONY FINANCIAL
PLATFORM RESULTS
(unaudited, $ in millions)
	Quarter Ended
	Mar 31, 2024		Dec 31, 2023		Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		1Q'24 vs. 1Q'23
HOME & AUTO
Purchase volume(1)	$	10,512	$	11,421	$	12,273	$	12,853	$	10,863	$	(351)	(3.2)	%
Period-end loan receivables	$	32,615	$	31,969	$	31,648	$	30,926	$	29,733	$	2,882	9.7	%
Average loan receivables, including held for sale	$	31,865	$	31,720	$	31,239	$	30,210	$	29,690	$	2,175	7.3	%
Average active accounts (in thousands)(2)	18,969		19,177		19,223		18,935		18,521		448		2.4	%

Interest and fees on loans	$	1,382	$	1,403	$	1,367	$	1,275	$	1,225	$	157	12.8	%
Other income	$	33	$	26	$	28	$	27	$	25	$	8	32.0	%




DIGITAL
Purchase volume(1)	$	12,628	$	15,510	$	13,808	$	13,472	$	12,261	$	367	3.0	%
Period-end loan receivables	$	27,734	$	28,925	$	26,685	$	25,758	$	24,944	$	2,790	11.2	%
Average loan receivables, including held for sale	$	28,081	$	27,553	$	26,266	$	25,189	$	24,982	$	3,099	12.4	%
Average active accounts (in thousands)(2)	21,349		21,177		20,768		20,559		20,564		785		3.8	%

Interest and fees on loans	$	1,567	$	1,579	$	1,530	$	1,422	$	1,363	$	204	15.0	%
Other income	$	6	$	(7)	$	(6)	$	(2)	$	1	$	5	NM




DIVERSIFIED & VALUE
Purchase volume(1)	$	14,023	$	16,987	$	15,445	$	15,356	$	13,439	$	584	4.3	%
Period-end loan receivables	$	19,559	$	20,666	$	18,865	$	18,329	$	17,702	$	1,857	10.5	%
Average loan receivables, including held for sale	$	19,593	$	19,422	$	18,565	$	17,935	$	17,713	$	1,880	10.6	%
Average active accounts (in thousands)(2)	21,032		21,038		20,410		20,346		20,807		225		1.1	%

Interest and fees on loans	$	1,214	$	1,204	$	1,168	$	1,091	$	1,070	$	144	13.5	%
Other income	$	(17)	$	(30)	$	(28)	$	(21)	$	(14)	$	(3)	21.4	%




HEALTH & WELLNESS
Purchase volume(1)	$	3,980	$	3,870	$	3,990	$	4,015	$	3,690	$	290	7.9	%
Period-end loan receivables	$	15,065	$	14,521	$	14,019	$	13,327	$	12,581	$	2,484	19.7	%
Average loan receivables, including held for sale	$	14,697	$	14,251	$	13,600	$	12,859	$	12,309	$	2,388	19.4	%
Average active accounts (in thousands)(2)	7,611		7,447		7,276		7,063		6,887		724		10.5	%

Interest and fees on loans	$	869	$	866	$	844	$	786	$	735	$	134	18.2	%
Other income	$	66	$	82	$	74	$	54	$	61	$	5	8.2	%


LIFESTYLE
Purchase volume(1)	$	1,244	$	1,550	$	1,490	$	1,580	$	1,302	$	(58)	(4.5)	%
Period-end loan receivables	$	6,604	$	6,744	$	6,483	$	6,280	$	5,971	$	633	10.6	%
Average loan receivables, including held for sale	$	6,631	$	6,568	$	6,383	$	6,106	$	5,919	$	712	12.0	%
Average active accounts (in thousands)(2)	2,642		2,620		2,556		2,529		2,611		31		1.2	%

Interest and fees on loans	$	255	$	255	$	249	$	232	$	223	$	32	14.3	%
Other income	$	8	$	7	$	8	$	7	$	7	$	1	14.3	%


CORP, OTHER
Purchase volume(1)	$	—	$	1	$	—	$	—	$	2	$	(2)	(100.0)	%
Period-end loan receivables	$	156	$	163	$	173	$	181	$	198	$	(42)	(21.2)	%
Average loan receivables, including held for sale	$	90	$	169	$	177	$	190	$	202	$	(112)	(55.4)	%
Average active accounts (in thousands)(2)	64		67		75		85		104		(40)		(38.5)	%

Interest and fees on loans	$	6	$	16	$	(7)	$	6	$	—	$	6	NM
Other income	$	1,061	$	(7)	$	16	$	(4)	$	(15)	$	1,076	NM


TOTAL SYF
Purchase volume(1)	$	42,387	$	49,339	$	47,006	$	47,276	$	41,557	$	830	2.0	%
Period-end loan receivables	$	101,733	$	102,988	$	97,873	$	94,801	$	91,129	$	10,604	11.6	%
Average loan receivables, including held for sale	$	100,957	$	99,683	$	96,230	$	92,489	$	90,815	$	10,142	11.2	%
Average active accounts (in thousands)(2)	71,667		71,526		70,308		69,517		69,494		2,173		3.1	%

Interest and fees on loans	$	5,293	$	5,323	$	5,151	$	4,812	$	4,616	$	677	14.7	%
Other income	$	1,157	$	71	$	92	$	61	$	65	$	1,092	NM



(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) 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
RECONCILIATION OF NON-GAAP MEASURES AND CALCULATIONS OF REGULATORY MEASURES(1)
(unaudited, $ in millions, except per share statistics)
	Quarter Ended
	Mar 31, 2024		Dec 31, 2023		Sep 30, 2023		Jun 30, 2023		Mar 31, 2023
COMMON EQUITY AND REGULATORY CAPITAL MEASURES(2)
GAAP Total equity	$	15,282	$	13,903	$	13,767	$	13,380	$	13,193
Less: Preferred stock	(1,222)		(734)		(734)		(734)		(734)
Less: Goodwill	(1,073)		(1,105)		(1,105)		(1,105)		(1,105)
Less: Intangible assets, net	(800)		(839)		(680)		(717)		(768)
Tangible common equity	$	12,187	$	11,225	$	11,248	$	10,824	$	10,586
Add: CECL transition amount	573		1,146		1,146		1,146		1,146



Adjustments for certain deferred tax liabilities and certain items in accumulated comprehensive income (loss)	225		229		255		255		258
Common equity Tier 1	$	12,985	$	12,600	$	12,649	$	12,225	$	11,990
Preferred stock	1,222		734		734		734		734
Tier 1 capital	$	14,207	$	13,334	$	13,383	$	12,959	$	12,724

Add: Subordinated debt	741		741		741		741		740
Add: Allowance for credit losses includible in risk-based capital	1,399		1,389		1,322		1,282		1,239
Total Risk-based capital	$	16,347	$	15,464	$	15,446	$	14,982	$	14,703

ASSET MEASURES(2)
Total average assets	$	119,034	$	114,599	$	110,335	$	108,401	$	105,842
Adjustments for:
Add: CECL transition amount	573		1,146		1,146		1,146		1,146
Less: Disallowed goodwill and other disallowed intangible assets (net of related deferred tax liabilities) and other	(1,631)		(1,671)		(1,507)		(1,537)		(1,564)

Total assets for leverage purposes	$	117,976	$	114,074	$	109,974	$	108,010	$	105,424


Risk-weighted assets	$	103,242	$	103,460	$	98,451	$	95,546	$	92,379

CECL FULLY PHASED-IN CAPITAL MEASURES
Tier 1 capital	$	14,207	$	13,334	$	13,383	$	12,959	$	12,724
Less: CECL transition adjustment	(573)		(1,146)		(1,146)		(1,146)		(1,146)
Tier 1 capital (CECL fully phased-in)	$	13,634	$	12,188	$	12,237	$	11,813	$	11,578
Add: Allowance for credit losses	10,905		10,571		10,176		9,804		9,517
Tier 1 capital (CECL fully phased-in) + Reserves for credit losses	$	24,539	$	22,759	$	22,413	$	21,617	$	21,095

Risk-weighted assets	$	103,242	$	103,460	$	98,451	$	95,546	$	92,379
Less: CECL transition adjustment	(290)		(580)		(580)		(580)		(580)
Risk-weighted assets (CECL fully phased-in)	$	102,952	$	102,880	$	97,871	$	94,966	$	91,799

TANGIBLE COMMON EQUITY PER SHARE
GAAP book value per share	$	35.03	$	32.36	$	31.50	$	30.25	$	29.08
Less: Goodwill	(2.68)		(2.72)		(2.67)		(2.65)		(2.58)
Less: Intangible assets, net	(1.99)		(2.05)		(1.65)		(1.71)		(1.79)
Tangible common equity per share	$	30.36	$	27.59	$	27.18	$	25.89	$	24.71

(1) Regulatory measures at March 31, 2024 are preliminary and therefore subject to change.
(2) Capital ratios reflect the phase-in of an estimate of CECL’s effect on regulatory capital over a three-year transitional period beginning in the first quarter of 2022 through 2024. Capital ratios for 2024 and 2023 reflect 75% and 50%, respectively, of the phase-in of CECL effects.



SYNCHRONY FINANCIAL
RECONCILIATION OF NON-GAAP MEASURES (Continued)
(unaudited, $ in millions, except per share statistics)

ADJUSTED FINANCIAL MEASURES	Quarter Ended
	Mar 31, 2024
Net revenue:
Net revenue	$	4,798
Less: Pets Best pre-tax gain on sale included in Other income	(1,069)
Adjusted Net revenue	$	3,729

Net earnings:
Net earnings	$	1,293
Less: Pets Best gain on sale after-tax	(802)
Adjusted Net earnings	$	491
Preferred dividends	(11)
Adjusted Net earnings available to common stockholders	$	480

Diluted earnings per share:
Diluted earnings per share	$	3.14
Less: Pets Best gain on sale impact	(1.96)
Adjusted Diluted earnings per share	$	1.18

Return on assets:
Return on assets(1)	4.4		%
Less: Pets Best gain on sale impact	(2.7)		%
Adjusted Return on assets	1.7		%

Return on equity:
Return on equity(2)	35.6		%
Less: Pets Best gain on sale impact	(21.8)		%
Adjusted Return on equity	13.8		%

Return on tangible common equity:
Return on tangible common equity(3)	43.6		%
Less: Pets Best gain on sale impact	(26.8)		%
Adjusted Return on tangible common equity	16.8		%

Efficiency ratio:
Efficiency Ratio(4)	25.1		%
Less: Pets Best gain on sale impact	7.2		%
Adjusted Efficiency ratio	32.3		%


(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) Efficiency ratio represents (i) other expense, divided by (ii) net interest income, plus other income, less retailer share arrangements.