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Mar 31
Synchrony Q1 2025 Earnings Report
Synchrony reported strong Q1 2025 earnings with solid net interest income and robust capital returns.
Key Takeaways
Synchrony delivered solid results in Q1 2025, supported by strong net interest margin, disciplined credit management, and a significant return of capital to shareholders through dividends and share repurchases.
Net earnings reached $757 million despite a decline from prior year figures influenced by a non-recurring gain.
Net interest margin improved to 14.74%, reflecting effective asset-liability management.
The company returned $697 million to shareholders and announced a new $2.5 billion repurchase plan.
Average active accounts and purchase volume declined modestly due to prior credit tightening actions.
Synchrony
Synchrony
Forward Guidance
Synchrony expects to remain resilient through 2025 with a continued focus on efficient operations and partner-aligned growth strategies.
Positive Outlook
- Continued strength in net interest income and margin.
- Improved net charge-off performance relative to seasonal trends.
- Strong capital ratios and liquidity coverage.
- Strategic partner renewals and new agreements in key verticals.
- Planned dividend increase and new $2.5B repurchase authorization.
Challenges Ahead
- Purchase volume and loan receivables declined year-over-year.
- Average active accounts fell 3% due to tighter credit and selective acquisition.
- Revenue impacted by absence of prior year’s Pets Best gain.
- Modest increases in operating expenses driven by tech and restructuring.
- Persistently high net charge-off ratio compared to pre-pandemic averages.