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Jun 30, 2020

Synchrony Q2 2020 Earnings Report

Synchrony reported second quarter net earnings amid the continuing Coronavirus (COVID-19) pandemic.

Key Takeaways

Synchrony Financial reported a net earnings of $48 million, or $0.06 per diluted share in Q2 2020. This includes an increase in the provision for credit losses as a result of CECL implementation earlier this year of $483 million, or $365 million after tax, which equates to an EPS reduction of $0.63.

Loan receivables decreased 4% to $78.3 billion, or 3% on a Core basis

Interest and fees on loans decreased 18% to $3.8 billion, or 7% on a Core basis

Purchase volume decreased 19% to $31.2 billion, or 13% on a Core basis

Average active accounts decreased 14% to 65 million, or 5% on a Core basis

Total Revenue
$3.4B
Previous year: $4.16B
-18.3%
EPS
$0.06
Previous year: $0.97
-93.8%
Net Interest Margin
13.53%
Purchase Volume
$31.2B
Average Active Accounts
65M
Cash and Equivalents
$28B
Previous year: $11.8B
+138.2%
Total Assets
$96.5B
Previous year: $106B
-9.3%

Synchrony

Synchrony