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Sep 30, 2021
Synchrony Q3 2021 Earnings Report
Synchrony's Q3 2021 performance was driven by strategic growth, expansion into new markets, and digital innovation, resulting in strong financial results.
Key Takeaways
Synchrony Financial reported strong third-quarter results with net earnings of $1.1 billion, or $2.00 per diluted share, driven by purchase volume growth and credit trends. The company saw increases in purchase volume, average active accounts, and new accounts.
Purchase volume increased 16% to $41.9 billion.
Loans increased 2% to $79.8 billion.
Average active accounts increased 5% to 67.2 million.
Net interest margin increased 165 basis points to 15.45%.
Forward Guidance
Synchrony remains confident in its business model and strategy to drive sustainable growth and attractive returns.
Positive Outlook
- Continued focus on growing existing programs and reaching new markets.
- Expansion into new products and distribution channels.
- Investment in digital innovation.
- Broad-based growth in new accounts and purchase volume.
- Improved net interest margin.
Challenges Ahead
- Customer payment rates remained elevated, serving as a headwind to loan receivables growth and yield.
- Other income decreased $37 million, or 28%, to $94 million, largely driven by higher program loyalty costs from higher purchase volume.
- Deposits decreased $3.2 billion, or 5%, to $60.3 billion
- Impact of macroeconomic conditions
Historical Earnings Impact
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Avg. Return Before/After Earnings
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