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Jun 30, 2023

Synchrony Q2 2023 Earnings Report

Synchrony demonstrated strong growth and financial performance, driven by consumer behavior reverting to pre-pandemic norms and the resonance of its products across diversified platforms and partners.

Key Takeaways

Synchrony Financial reported second quarter 2023 net earnings of $569 million, or $1.32 per diluted share. Purchase volume remained largely unchanged at $47.3 billion, while loan receivables increased by 15% to $94.8 billion. The company returned $399 million of capital to shareholders, including $300 million in share repurchases.

Net earnings were $569 million, or $1.32 per diluted share.

Purchase volume remained largely unchanged at $47.3 billion, with a 6% increase on a Core basis.

Loan receivables increased 15% to $94.8 billion.

Returned $399 million of capital to shareholders, including $300 million in share repurchases.

Total Revenue
$4.12B
Previous year: $3.8B
+8.4%
EPS
$1.32
Previous year: $1.6
-17.5%
Net Interest Margin
14.94%
Previous year: 15.6%
-4.2%
Purchase Volume
$47.3B
Previous year: $47.2B
+0.2%
Average Active Accounts
69.5M
Previous year: 68.7M
+1.2%
Cash and Equivalents
$19.4B
Previous year: $10.7B
+81.6%
Total Assets
$109B
Previous year: $95.2B
+14.2%

Synchrony

Synchrony

Forward Guidance

Synchrony is focused on actively managing assets and prudently managing capital to optimize long-term value creation and resiliency, given uncertainties in the macro environment and the financial services industry.

Positive Outlook

  • Continuing commitment to robust capital returns.
  • Incremental $1 billion share repurchase authorization through June of 2024.
  • 9% increase in common stock dividend.
  • Long history of capital generation and management.
  • Resilient business model.

Challenges Ahead

  • Uncertainties in the macro environment.
  • Uncertainties in the financial services industry.
  • Focus on actively managing the assets that we originate.
  • Prudently managing the capital we generate.
  • Optimize Synchrony’s long-term value creation and resiliency.