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Jun 30
Synchrony Q2 2025 Earnings Report
Synchrony delivered strong earnings growth in Q2 2025 driven by lower credit losses and improved net interest margin.
Key Takeaways
The company reported solid earnings growth with net income rising significantly year-over-year, supported by lower credit losses and higher loan yields, despite a modest revenue decline.
Net income increased to $967M from $643M a year ago
Net interest margin improved to 14.78% from 14.46% YoY
Provision for credit losses decreased by 32% due to reserve release and lower net charge-offs
EPS rose to $2.50 from $1.55 YoY
Synchrony
Synchrony
Forward Guidance
Synchrony expects stable credit performance, moderate revenue growth, and higher efficiency ratios due to strategic initiatives.
Positive Outlook
- Improving loan yield related to credit seasonality
- Lower funding cost due to reduced benchmark rates
- Higher payment rates consistent with improved credit performance
- Improved asset mix expected to support margins
- RSA to improve as program performance strengthens
Challenges Ahead
- Net revenue guided slightly lower due to higher RSA and lower loan receivables
- Efficiency ratio expected to rise to 32-33%
- Slower purchase volume growth from selective consumer behavior
- Impact of Walmart/OnePay program launch on expenses
- Flat loan receivables growth expected