Synchrony Financial
For the period ended Jun 30, 2025. Filed Jul 23, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Jul 23, 2025
SYF$73.74-0.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-04-24.
0001601712-25-000144
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsIndex to Condensed Consolidated Financial StatementsCondensed Consolidated Statements of Earnings –Three months ended March 31, 2025 and 2024Condensed Consolidated Statements of Comprehensive Income –Three months ended March 31, 2025 and 2024Condensed Consolidated Statements of Financial Position –March 31, 2025 and December 31, 2024Condensed Consolidated Statements of Changes in Equity –Three months ended March 31, 2025 and 2024Condensed Consolidated Statements of Cash Flows –Three months ended March 31, 2025 and 2024Notes to Condensed Consolidated Financial StatementsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-07-23.
0001601712-25-000231
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsIndex to Condensed Consolidated Financial StatementsCondensed Consolidated Statements of Earnings –Three and six months ended June 30, 2025 and 2024Condensed Consolidated Statements of Comprehensive Income –Three and six months ended June 30, 2025 and 2024Condensed Consolidated Statements of Financial Position –June 30, 2025 and December 31, 2024Condensed Consolidated Statements of Changes in Equity –Three and six months ended June 30, 2025 and 2024Condensed Consolidated Statements of Cash Flows –Six months ended June 30, 2025 and 2024Notes to Condensed Consolidated Financial StatementsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 399 previous paragraphs and 423 current paragraphs.
279 unchanged; 106 reworded; 35 added; 12 removed; 2 previous and 3 current paragraphs rearranged.
Tables are not compared: 70 previous and 80 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (35)
Current report
Extended duration of our credit card program agreements.
Current report
In July 2025, we extended our program agreement with Amazon, one of our five largest programs based upon interest and fees on loans for the year ended December 31, 2024. Following the renewal of this program, the current expiration dates for program agreements with our five largest partners range from 2030 through 2035. In addition, during the six months ended June 30, 2025, we have added or renewed over 25 partners, including our program agreement with Amazon. As a result, a total of 22 of our 25 largest program agreements now have an expiration date in 2027 or beyond. These 22 program agreements represented, in the aggregate as a percentage of the total attributable to our 25 largest programs, 98% of our interest and fees on loans for the year ended December 31, 2024 and 97% of our loan receivables at December 31, 2024.
Current report
•Loan receivables decreased 2.5% to $99.8 billion at June 30, 2025 compared to $102.3 billion at June 30, 2024, primarily reflecting the impact of lower purchase volume and higher payment rates, as well as the reclassification of $0.2 billion of loan receivables to loan receivables held for sale.
Current report
•Retailer share arrangements increased 22.5% to $992 million and 19.9% to $1.9 billion for the three and six months ended June 30, 2025, respectively, primarily reflecting lower net charge-offs and the impact of our product, pricing and policy changes.
Current report
•Provision for credit losses decreased by $545 million, or 32.2%, and $938 million, or 26.2%, for the three and six months ended June 30, 2025, respectively, primarily driven by reserve releases in the current year as compared to builds in the prior year, as well as lower net charge-offs. Our allowance coverage ratio (allowance for credit losses as a percentage of period-end loan receivables) decreased to 10.59% at June 30, 2025, as compared to 10.74% at June 30, 2024.
Current report
•Other income increased by $1 million to $118 million, and decreased by $1.0 billion to $267 million for the three and six months ended June 30, 2025, respectively. The increase in the three months ended June 30, 2025 was primarily driven by the impact of our product, pricing and policy change related fees in the current year period, partially offset by a gain of $51 million related to an exchange of Visa Class B-1 common stock in the prior year period. The decrease in the six months ended June 30, 2025 was primarily driven by the $1.1 billion gain on sale related to Pets Best in the prior year, partially offset by the impact of our product, pricing and policy change related fees in the current year period.
Current report
•Other expense increased by $68 million, or 5.8%, and $105 million, or 4.4%, for the three and six months ended June 30, 2025, respectively. The increases in the three and six months ended June 30, 2025 were primarily driven by higher employee costs, partially offset by lower operational losses and late fee rule preparatory expenses in the prior year. The increase in the six months ended June 30, 2025 was also driven by costs related to technology investments.
Current report
•In our Diversified & Value sales platform, we announced our new partnership with OnePay to become the exclusive issuer of a general purpose and private label credit card program at Walmart
Current report
During the second quarter of 2025, we also entered into an agreement to sell loan receivables associated with a Home & Auto partner program agreement. The sale of the portfolio, which is subject to customary closing conditions, is expected to be completed in the fourth quarter of 2025.
Current report
Average loan receivables, including held for sale, decreased 2.2% and 1.1% for the three and six months ended June 30, 2025, respectively, primarily driven by lower purchase volume and higher payment rates. Purchase volume decreased by 1.6% and 2.7% for the three and six months ended June 30, 2025, respectively, reflecting selective consumer spending as well as the impact of previous credit actions.
Current report
Provision for credit losses decreased by $545 million, or 32.2%, and $938 million, or 26.2%, for the three and six months ended June 30, 2025, respectively, primarily driven by reserve releases in the current year as compared to reserve builds in the prior year, as well as lower net charge-offs. The reserve releases for the three and six months ended June 30, 2025 were $265 million and $362 million, respectively, as compared to reserve builds of $70 million and $369 million, respectively, in the prior year periods. The reserve build in the six months ended June 30, 2024 included $180 million related to the Ally Lending acquisition.
Current report
Net charge-offs for the three and six months ended June 30, 2025 decreased by $210 million and $207 million, respectively. The net charge-off rate for the three and six months ended June 30, 2025 decreased by 72 basis points to 5.70%, and 33 basis points to 6.04%, respectively, as compared to the prior year periods.
Current report
Other income increased by $1 million to $118 million, and decreased by $1.0 billion, to $267 million, for the three and six months ended June 30, 2025, respectively.
Current report
The increase in the three months ended June 30, 2025 was primarily driven by the impact of our product, pricing and policy change related fees in the current year period, partially offset by a gain of $51 million related to an exchange of Visa Class B-1 common stock in the prior year period.
Current report
The increase in the three months ended June 30, 2025 was primarily driven by an increase in employee costs, partially offset by lower operational losses and late fee rule preparatory expenses in the prior year. The increase in employee costs was primarily driven by higher variable compensation, as well as additional headcount to support technology investments and higher medical benefit costs. The increase in variable compensation included mark-to-market adjustments for deferred compensation plans, higher stock-based compensation expense and higher incentive compensation, including an inflation bonus for our non-exempt employees.
Current report
The increase in the six months ended June 30, 2025 was also driven by higher information processing costs related to technology investments, in addition to the factors discussed above for the three months ended June 30, 2025.
Current report
On July 4, 2025, the One Big Beautiful Bill Act (the “Act”) was enacted into law, which included certain modifications to U.S. tax law. The Company is currently evaluating the provisions of the Act but does not expect the Act to have a material impact on our Consolidated Financial Statements.
Current report
In the second quarter of 2025, we entered into an agreement to sell $0.2 billion of loan receivables associated with a Home & Auto partner program agreement. In connection with this agreement, revenue activities for the portfolio are no longer managed within our Home & Auto sales platform. All related metrics previously reported within our Home & Auto sales platform, are now reported within Corp, Other below. We have also recast all prior-period reported metrics for our Home & Auto sales platform and Corp, Other to conform to the current-period presentation.
Current report
Home & Auto interest and fees on loans decreased by $14 million, or 1.0%, and increased by $16 million, or 0.6%, for the three and six months ended June 30, 2025, respectively.
Current report
The increases in loan receivables yield reflects the impact of product, pricing and policy changes, partially offset by lower late fee incidence. The decreases in average loan receivables was primarily driven by lower purchase volume and higher payment rates. Purchase volume decreased 7.2% and 8.1% for the three and six months ended June 30, 2025, respectively, reflecting the combination of selective consumer spending amidst macroeconomic uncertainty and previous credit actions.
Current report
Other income increased by $15 million, or 40.5%, and $39 million, or 56.5%, for the three and six months ended June 30, 2025, respectively, primarily due to the impact of product, pricing and policy change related fees.
Current report
Purchase volume was flat for the three and six months ended June 30, 2025, respectively, as growth in consumer spend per account was offset by fewer active accounts, which included the impact of previous credit actions. Average active accounts decreased by 3.9% and 4.0% for the three and six months ended June 30, 2025, respectively.
Current report
Purchase volume decreased 2.0% and 3.6%, for the three and six months ended June 30, 2025, respectively, reflecting lower spend in industries such as Cosmetic and Dental, combined with the impact of previous credit actions, partially offset by growth in Pet and Audiology. Average active accounts decreased 0.7% and increased 0.9% for the three and six months ended June 30, 2025, respectively.
Current report
Lifestyle interest and fees on loans increased by $3 million, or 1.2%, and $9 million, or 1.8%, for the three and six months ended June 30, 2025, respectively. The increase for the three months ended June 30, 2025 was primarily driven by higher loan receivables yield, reflecting the impact of product, pricing and policy changes partially offset by lower benchmark rates and lower average loan receivables. The increase in the six months ended June 30, 2025 was primarily driven by higher loan receivables yield, reflecting the impact of product, pricing and policy changes partially offset by lower late fee incidence and lower benchmark rates.
Current report
Purchase volume decreased by 6.1% for both the three and six months ended June 30, 2025, respectively, primarily driven by decreases in Outdoor and Luxury, as well as in Specialty for the six months ended June 30, 2025, as consumers continued to manage discretionary spend.
Current report
The decrease in loan receivables for both periods also included the impact of the reclassification of $0.2 billion of loan receivables to loan receivables held for sale in the second quarter of 2025.
Current report
(2)Includes $675 million of fixed securitized borrowings which matured and were repaid in July 2025.
Current report
During the six months ended June 30, 2025, we made repayments totaling $750 million of senior unsecured notes issued by Synchrony Financial.
Current report
(3)Principal amount of $1.0 billion repaid in July 2025.
Current report
On September 17, 2024, the OCC finalized a new Policy Statement Regarding Statutory Factors Under the Bank Merger Act (the “Policy Statement”), which updated the factors the OCC would apply in evaluating a proposed bank merger transaction. The Policy Statement could have potentially made it more difficult and/or costly for us to obtain OCC approval for an acquisition or otherwise resulted in more onerous conditions in approval orders than the OCC had previously imposed. On May 8, 2025, the OCC rescinded the Policy Statement.
Current report
On October 22, 2024, the CFPB issued a final rule to implement Section 1033 of the Dodd-Frank Act. Under the final rule, financial institutions such as the Bank that offer credit cards or consumer deposit accounts would be required, upon request, to make available to a consumer or third party authorized by the consumer certain information the Bank has concerning a consumer financial product or service covered by the rule, such as a credit card or a deposit account. Industry organizations challenged the final rule in court. On May 30, 2025, the CFPB filed a motion for summary judgment in the litigation, in which the CFPB stated that it had concluded that the final rule exceeded the agency’s statutory authority. As a result, the CFPB requested that the court grant the plaintiffs’ motion for summary judgment and vacate the final rule. The district court has not yet ruled on the CFPB’s motion.
Current report
Loan Receivables Held for Sale
Current report
During the second quarter of 2025, we entered into an agreement to sell loan receivables associated with one of our retailer program agreements. As a result, at June 30, 2025, these loan receivables are classified as loan receivables held for sale on our Condensed Consolidated Statement of Financial Position. The sale of the portfolio, which is subject to customary closing conditions, is expected to be completed in the fourth quarter of 2025.
Current report
Income (principally, interest and fees on loans) earned by our consolidated VIEs was $2.1 billion and $2.0 billion for the six months ended June 30, 2025 and 2024, respectively. Related expenses consisted primarily of provision for credit losses of $462 million and $422 million for the six months ended June 30, 2025 and 2024, respectively, and interest expense of $208 million and $215 million for the six months ended June 30, 2025 and 2024, respectively.
Current report
(a)Includes $1.0 billion of fixed senior unsecured notes issued by Synchrony Financial and $675 million of fixed securitized borrowings which matured and were repaid in July 2025.
Removed paragraphs (12)
Previous report
The seasonal trends discussed above are most evident between the fourth quarter and the first quarter of the following year, particularly with respect to our loan receivables which decreased by $5.1 billion, or 4.9% to $99.6 billion at March 31, 2025 compared to $104.7 billion at December 31, 2024, and our allowance for credit losses as a percentage of total loan receivables that increased to 10.87% at March 31, 2025, from 10.44% at December 31, 2024.
Previous report
•Loan receivables decreased 2.1% to $99.6 billion at March 31, 2025 compared to $101.7 billion at March 31, 2024, primarily reflecting the impact of lower purchase volume.
Previous report
•Retailer share arrangements increased 17.1% to $895 million for the three months ended March 31, 2025, primarily reflecting program performance which includes the impact of our product, pricing and policy changes.
Previous report
•Provision for credit losses decreased by $393 million, or 20.9%, for the three months ended March 31, 2025, primarily driven by a reserve release of $97 million versus a reserve build of $299 million in the prior year which included a $190 million reserve build related to the Ally Lending acquisition. Our allowance coverage ratio (allowance for credit losses as a percentage of period-end loan receivables) increased to 10.87% at March 31, 2025, as compared to 10.72% at March 31, 2024.
Previous report
•Other expense increased by $37 million, or 3.1%, for the three months ended March 31, 2025. The increase in the three months ended March 31, 2025 was primarily driven by costs related to technology investments, and also included the impacts of a charitable contribution and a restructuring charge related to our Ally Lending business.
Previous report
Average loan receivables, including held for sale, was flat for the three months ended March 31, 2025, primarily driven by the impact of the Ally Lending acquisition, offset by lower purchase volume. Purchase volume decreased by 3.9% for the three months ended March 31, 2025, primarily reflecting lower consumer spend as well as the impact of credit actions.
Previous report
Provision for credit losses decreased by $393 million, or 20.9%, for the three months ended March 31, 2025, primarily driven by a reserve release of $97 million versus a reserve build of $299 million in the prior year which included a $190 million reserve build related to the Ally Lending acquisition. The net charge-off rate for the three months ended March 31, 2025 increased by 7 basis points to 6.38%, as compared to the prior year period.
Previous report
Other income decreased by $1.0 billion to $149 million for the three months ended March 31, 2025, primarily driven by a $1.1 billion gain on sale related to Pets Best in the prior year, partially offset by the impact of our product, pricing and policy change related fees. The pre-tax gain amount of $1.1 billion was included within the Other component of Other Income in our Condensed Consolidated Statements of Earnings.
Previous report
The increase in the three months ended March 31, 2025 was primarily driven by costs related to technology investments in information processing, and also included the impacts of a charitable contribution in other and a restructuring charge related to our Ally Lending business in employee costs.
Previous report
Other income increased by $24 million, or 72.7%, for the three months ended March 31, 2025 was primarily due to the impact of product, pricing and policy change related fees and lower loyalty costs.
Previous report
Digital interest and fees on loans decreased by $23 million, or 1.5%, for the three months ended March 31, 2025, respectively, primarily driven by lower loan receivables yield, reflecting lower benchmark rates and lower late fee incidence, partially offset by the impact of product, pricing and policy changes. Purchase volume decreased by 1.2% for the three months ended March 31, 2025, as growth in consumer spend per account was more than offset by fewer active accounts, reflecting a more selective acquisition strategy. Average active accounts decreased by 3.0% for the three months ended March 31, 2025.
Previous report
Lifestyle interest and fees on loans increased by $6 million, or 2.4%, for the three months ended March 31, 2025, primarily driven by higher loan receivables yield, reflecting the impact of product, pricing and policy changes partially offset by lower benchmark rates, and growth in average loan receivables. Purchase volume decreased by 6.1% for the three months ended March 31, 2025, driven by lower spend in Outdoor and Specialty, as consumers continued to manage discretionary spend, and also includes the impact of credit actions.
Reworded paragraphs (106)
Previous wording
We are a premier consumer financial services company delivering one of the industry's most complete digitally-enabled product suites. Our experience, expertise and scale encompass a broad spectrum of industries including digital, health and wellness, retail, telecommunications, home, auto, outdoor, pet and more. We have an established and diverse group of national and regional retailers, local merchants, manufacturers, buying groups, industry associations and healthcare service providers, which we refer to as our “partners.” For the three months ended March 31, 2025, we financed $40.7 billion of purchase volume and had 69.3 million average active accounts and at March 31, 2025, we had $99.6 billion of loan receivables.
Current wording
We are a premier consumer financial services company delivering one of the industry's most complete digitally-enabled product suites. Our experience, expertise and scale encompass a broad spectrum of industries including digital, health and wellness, retail, telecommunications, home, auto, outdoor, pet and more. We have an established and diverse group of national and regional retailers, local merchants, manufacturers, buying groups, industry associations and healthcare service providers, which we refer to as our “partners.” For the three and six months ended June 30, 2025, we financed $46.1 billion and $86.8 billion of purchase volume, respectively and had 68.1 million and 68.8 million average active accounts, respectively and at June 30, 2025, we had $99.8 billion of loan receivables.
Previous wording
We offer our credit products primarily through our wholly-owned subsidiary, the Bank. In addition, through the Bank, we offer, directly to retail, affinity relationships and commercial customers, a range of deposit products insured by the Federal Deposit Insurance Corporation (“FDIC”), including certificates of deposit, individual retirement accounts (“IRAs”), money market accounts, savings accounts and sweep and affinity deposits. We also take deposits at the Bank through third-party securities brokerage firms that offer our FDIC-insured deposit products to their customers. Our deposit base has continued to serve as a source of stable and diversified low-cost funding for our credit activities. At March 31, 2025, we had $83.4 billion in deposits, which represented 83% of our total funding sources.
Current wording
We offer our credit products primarily through our wholly-owned subsidiary, the Bank. In addition, through the Bank, we offer, directly to retail, affinity relationships and commercial customers, a range of deposit products insured by the Federal Deposit Insurance Corporation (“FDIC”), including certificates of deposit, individual retirement accounts (“IRAs”), money market accounts, savings accounts and sweep and affinity deposits. We also take deposits at the Bank through third-party firms that offer our FDIC-insured deposit products to their customers. Our deposit base has continued to serve as a source of stable and diversified low-cost funding for our credit activities. At June 30, 2025, we had $82.3 billion in deposits, which represented 84% of our total funding sources.
Previous wording
Our Health & Wellness sales platform provides comprehensive healthcare payments and financing solutions, through a network of providers and health related retail locations, for those seeking health and wellness care for themselves, their families and their pets, and includes our CareCredit brand, as well as partners such as Walgreens.
Current wording
Our Health & Wellness sales platform provides comprehensive healthcare payments and financing solutions, through a network of providers and retail locations, for those seeking health and wellness care for themselves, their families and their pets, and includes our CareCredit brand, as well as partners such as Walgreens.
Previous wording
We believe our business and results of operations will be impacted in the future by various trends and conditions. For a discussion of certain trends and conditions, see “Management's Discussion and Analysis of Financial Condition and Results of Operations—Business Trends and Conditions” in our 2024 Form 10-K and see below for recent developments. For a discussion of how certain trends and conditions impacted the three months ended March 31, 2025, see “—Results of Operations.”
Current wording
We believe our business and results of operations will be impacted in the future by various trends and conditions. For a discussion of certain trends and conditions, see “Management's Discussion and Analysis of Financial Condition and Results of Operations—Business Trends and Conditions” in our 2024 Form 10-K and see below for recent developments. For a discussion of how certain trends and conditions impacted the three and six months ended June 30, 2025, see “—Results of Operations.”
Previous wording
In anticipation that the final rule would become effective, we implemented a number of product, pricing and policy changes in the prior year. In light of the final rule being vacated, we plan to review the product, pricing and policy changes with our partners, consistent with our usual business practice of monitoring overall program performance, including assessing whether any adjustments are warranted.
Current wording
In anticipation that the final rule would become effective, we implemented a number of product, pricing and policy changes in the prior year. In light of the final rule being vacated, we have incorporated the review of these product, pricing and policy changes with our partners into our usual business practice of monitoring overall program performance, including assessing whether any adjustments to these changes are warranted. As a result of these reviews, we expect to make minor modifications to these changes in 2025.
Previous wording
The seasonal impact to purchase volume and the loan receivables balance typically results in fluctuations in our results of operations, delinquency metrics and the allowance for credit losses as a percentage of total loan receivables between quarterly periods.
Current wording
The seasonal impact to purchase volume and the loan receivables balance typically results in fluctuations in our results of operations, delinquency metrics and the allowance for credit losses as a percentage of total loan receivables between quarterly periods. These fluctuations are generally most evident between the fourth quarter and the first quarter of the following year.
Previous wording
Highlights for the Three Months Ended March 31, 2025
Current wording
Highlights for the Three and Six Months Ended June 30, 2025
Previous wording
Below are highlights of our performance for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, as applicable, except as otherwise noted.
Current wording
Below are highlights of our performance for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024, as applicable, except as otherwise noted.
Previous wording
•Net earnings decreased to $757 million from $1.3 billion for the three months ended March 31, 2025. The decrease in the three months ended March 31, 2025 was primarily driven by the after-tax gain on sale related to Pets Best of $802 million in the prior year, and higher retailer share arrangements, partially offset by a decrease in provision for credit losses.
Current wording
•Net earnings increased to $967 million from $643 million and decreased to $1.7 billion from $1.9 billion for the three and six months ended June 30, 2025, respectively. The increase in the three months ended June 30, 2025 was primarily driven by a decrease in provision for credit losses, partially offset by higher retailer share arrangements. The decrease in the six months ended June 30, 2025 was primarily driven by the after-tax gain on sale related to Pets Best of $802 million in the prior year, and higher retailer share arrangements, partially offset by a decrease in provision for credit losses.
Previous wording
•Net interest income increased 1.3% to $4.5 billion for the three months ended March 31, 2025 primarily driven by a reduction in interest expense. For the three months ended March 31, 2025, interest expense decreased 6.6% primarily due to lower benchmark rates. Interest and fees on loans was flat for the three months ended March 31, 2025, primarily driven by the impact of our product, pricing and policy changes, offset by lower benchmark rates and lower late fee incidence.
Current wording
•Net interest income increased 2.6% to $4.5 billion and 2.0% to $9.0 billion for the three and six months ended June 30, 2025, respectively, primarily driven by higher loan receivables yield and a reduction in interest expense. For the three and six months ended June 30, 2025, interest expense decreased 9.5% and 8.1%, respectively, primarily due to lower interest-bearing liabilities cost associated with lower benchmark rates. Interest and fees on loans increased 0.5% and 0.4% for the three and six months ended June 30, 2025, respectively, primarily reflecting the impact of our product, pricing and policy changes, partially offset by a combination of lower benchmark rates and lower late fee incidence.
Previous wording
•Over-30 day loan delinquencies as a percentage of period-end loan receivables decreased 22 basis points to 4.52% at March 31, 2025 compared to March 31, 2024. The net charge-off rate increased 7 basis points to 6.38% for the three months ended March 31, 2025.
Current wording
•Over-30 day loan delinquencies as a percentage of period-end loan receivables decreased 29 basis points to 4.18% at June 30, 2025 compared to June 30, 2024. The net charge-off rate decreased 72 basis points to 5.70% for the three and six months ended June 30, 2025.
Previous wording
•At March 31, 2025, deposits represented 83% of our total funding sources. Total deposits increased by 1.7% to $83.4 billion at March 31, 2025, compared to December 31, 2024.
Current wording
•At June 30, 2025, deposits represented 84% of our total funding sources. Total deposits increased by 0.2% to $82.3 billion at June 30, 2025, compared to December 31, 2024.
Previous wording
•During the three months ended March 31, 2025, we declared and paid cash dividends totaling $21 million on our Series A 5.625% fixed rate non-cumulative perpetual preferred stock and our Series B 8.250% fixed rate reset non-cumulative perpetual preferred stock.
Current wording
•During the six months ended June 30, 2025, we declared and paid cash dividends totaling $42 million on our Series A 5.625% fixed rate non-cumulative perpetual preferred stock and our Series B 8.250% fixed rate reset non-cumulative perpetual preferred stock.
Previous wording
•During the three months ended March 31, 2025, we repurchased $600 million of our outstanding common stock, and declared and paid cash dividends of $0.25 per share, or $97 million in the aggregate. At March 31, 2025, we completed our prior share repurchase program, and in April 2025 we announced that the Board of Directors approved a new share repurchase program of up to $2.5 billion, through June 30, 2026, and increased our quarterly dividend to $0.30 per common share commencing in the second quarter of 2025. For more information, see “Capital—Dividend and Share Repurchases.”
Current wording
•During the six months ended June 30, 2025, we repurchased $1.1 billion of our outstanding common stock, and declared and paid cash dividends of $0.55 per share, or $211 million in the aggregate. In April 2025 we announced that the Board of Directors approved a new share repurchase program of up to $2.5 billion, through June 30, 2026, and increased our quarterly dividend to $0.30 per common share commencing in the second quarter of 2025. At June 30, 2025 we had a total share repurchase authorization of $2.0 billion remaining. For more information, see “Capital—Dividend and Share Repurchases.”
Previous wording
During the three months ended March 31, 2025, and to date, we continued to expand and diversify our portfolio with the addition or renewal of more than 10 partners, which included the following:
Current wording
During the six months ended June 30, 2025, and to date, we continued to expand and diversify our portfolio with the addition or renewal of more than 25 partners, which included the following:
Previous wording
•In our Home & Auto sales platform, we extended our program agreements with Ashley HomeStores, Inc. and Discount Tire.
Current wording
•In our Home & Auto sales platform, we extended our program agreements with Ashley HomeStores, Inc., Discount Tire, Gardner White and Home Furnishings Association.
Previous wording
•In our Digital sales platform, we announced our new partnership with Sun Country Airlines.
Current wording
•In our Digital sales platform, we announced our new partnership with Sun Country Airlines and extended our program agreement with Amazon.
Previous wording
(2)Includes average restricted cash balances of $690 million and $109 million for the three months ended March 31, 2025 and 2024, respectively.
Current wording
(2)Includes average restricted cash balances of $642 million and $61 million for the three months ended June 30, 2025 and 2024, respectively, and $666 million and $85 million for the six months ended June 30, 2025 and 2024, respectively.
Previous wording
(3)Interest income on loan receivables includes fees on loans, which primarily consist of late fees on our credit products, of $588 million and $652 million for the three months ended March 31, 2025 and 2024, respectively.
Current wording
(3)Interest income on loan receivables includes fees on loans, which primarily consist of late fees on our credit products, of $560 million and $609 million for the three months ended June 30, 2025 and 2024, respectively, and $1.1 billion and $1.3 billion for the six months ended June 30, 2025 and 2024, respectively.
Previous wording
Interest income was flat for the three months ended March 31, 2025, reflecting the trend in interest and fees on loans, as the impacts of our product, pricing and policy changes were offset by a combination of lower benchmark rates and lower late fee incidence, as well as lower interest income from our liquidity portfolio.
Current wording
Interest income was flat for the three and six months ended June 30, 2025, reflecting higher interest and fees on loans, offset by lower interest income from our liquidity portfolio. The trend in interest and fees on loans reflects the impacts of our product, pricing and policy changes, offset by a combination of lower benchmark rates and lower late fee incidence, as well as a decrease in average loan receivables.
Previous wording
The yield on average interest-earning assets decreased for the three months ended March 31, 2025 primarily due to a lower yield on our liquidity portfolio, partially offset by an increase in the yield on average loan receivables. The loan receivable yield increased 24 basis points for the three months ended March 31, 2025 to 21.33%, driven by the impacts of our product, pricing and policy changes, partially offset by lower benchmark rates and lower late fee incidence.
Current wording
The yield on average interest-earning assets decreased for the three and six months ended June 30, 2025 primarily due to a decrease in the percentage of interest-earning assets attributable to loan receivables and a lower yield on our liquidity portfolio, partially offset by an increase in the yield on average loan receivables. The loan receivable yield increased 53 basis points to 21.54% and 38 basis points to 21.43% for the three and six months ended June 30, 2025, driven by the impacts of our product, pricing and policy changes, partially offset by a combination of lower benchmark rates and lower late fee incidence.
Previous wording
Interest expense decreased by $77 million to $1.1 billion, for the three months ended March 31, 2025, primarily due to lower benchmark rates. Our cost of funds decreased to 4.48% for the three months ended March 31, 2025, compared to 4.74% for the three months ended March 31, 2024.
Current wording
Interest expense decreased by $112 million to $1.1 billion and $189 million to $2.2 billion, for the three and six months ended June 30, 2025, respectively, primarily due to lower interest-bearing liabilities cost associated with lower benchmark rates. Our cost of funds decreased to 4.35% and 4.41% for the three and six months ended June 30, 2025, respectively, compared to 4.80% and 4.77% for the three and six months ended June 30, 2024, respectively.
Previous wording
Net interest income increased by $59 million, or 1.3%, for the three months ended March 31, 2025, resulting from the changes in interest income and interest expense discussed above.
Current wording
Net interest income increased by $116 million, or 2.6%, and $175 million, or 2.0%, for the three and six months ended June 30, 2025, respectively, resulting from the changes in interest income and interest expense discussed above.
Previous wording
Retailer share arrangements increased by $131 million, or 17.1%, for the three months ended March 31, 2025, reflecting program performance which includes the impact of our product, pricing and policy changes.
Current wording
Retailer share arrangements increased by $182 million, or 22.5% and $313 million to 19.9%, for the three and six months ended June 30, 2025, respectively, reflecting lower net charge-offs and the impact of our product, pricing and policy changes.
Previous wording
•Other income decreased by $1.0 billion to $149 million, for the three months ended March 31, 2025 primarily driven by the $1.1 billion gain on sale related to Pets Best in the prior year, partially offset by the impact of our product, pricing and policy change related fees in the current year period.
Current wording
The decrease in the six months ended June 30, 2025 was primarily driven by the $1.1 billion gain on sale related to Pets Best in the prior year, partially offset by the impact of our product, pricing and policy change related fees in the current year period.
Previous wording
Other expense increased by $37 million, or 3.1%, for the three months ended March 31, 2025.
Current wording
Other expense increased by $68 million, or 5.8%, and $105 million, or 4.4% for the three and six months ended June 30, 2025, respectively.
Previous wording
The effective tax rate for the three months ended March 31, 2025 decreased compared to the same period in the prior year primarily due to an increase in tax benefits from stock-based compensation in the current period combined with a reduction in pretax income. The effective tax rate differs from the applicable U.S. federal statutory tax rate primarily due to state income taxes.
Current wording
The effective tax rate for the three and six months ended June 30, 2025 decreased compared to the same period in the prior year primarily due to an increase in tax benefits from stock-based compensation combined with a tax benefit from remeasuring the deferred tax asset for increases in state tax rates in the current period. The effective tax rate differs from the applicable U.S. federal statutory tax rate primarily due to state income taxes.
Previous wording
As discussed above under “—Our Sales Platforms,” we offer our credit products primarily through five sales platforms (Home & Auto, Digital, Diversified & Value, Health & Wellness and Lifestyle). The following is a discussion of certain supplemental information for the three months ended March 31, 2025, for each of our five sales platforms and Corp, Other.
Current wording
As discussed above under “—Our Sales Platforms,” we offer our credit products primarily through five sales platforms (Home & Auto, Digital, Diversified & Value, Health & Wellness and Lifestyle). The following is a discussion of certain supplemental information for the three and six months ended June 30, 2025, for each of our five sales platforms and Corp, Other.
Previous wording
Home & Auto interest and fees on loans increased by $31 million, or 2.2%, for the three months ended March 31, 2025, primarily driven by higher loan receivables yield and the impacts of the Ally Lending acquisition in March 2024, partially offset by lower average loan receivables. The increase in loan receivables yield reflects the impact of product, pricing and policy changes, partially offset by lower late fee incidence. Purchase volume decreased 9.0% for the three months ended March 31, 2025, driven by a combination of lower consumer traffic and the impact of credit actions.
Current wording
The decrease in the three months ended June 30, 2025 was primarily driven by lower average loan receivables, partially offset by higher loan receivables yield. The increase in the six months ended June 30, 2025 was primarily driven by higher loan receivables yield and the impacts of the Ally Lending acquisition in March 2024, partially offset by lower average loan receivables.
Previous wording
Diversified & Value interest and fees on loans decreased by $36 million, or 3.0%, for the three months ended March 31, 2025, primarily driven by lower loan receivables yield, reflecting lower benchmark rates and lower late fee incidence, partially offset by the impact of product, pricing and policy changes. Purchase volume decreased by 2.1% for the three months ended March 31, 2025 as growth in consumer spend per account was more than offset by fewer active accounts, primarily reflecting lower consumer traffic and the impact of credit actions. Average active accounts decreased by 4.4% for the three months ended March 31, 2025.
Current wording
Digital interest and fees on loans increased by $32 million, or 2.1%, and $9 million, or 0.3% for the three and six months ended June 30, 2025, respectively, primarily driven by higher loan receivable yield, which included the impacts of product, pricing and policy changes, offset by lower benchmark rates and lower late fee incidence. Purchase volume increased by 1.8% and 0.4% for the three and six months ended June 30, 2025, as growth in new accounts and consumer spend per account was partially offset by fewer active accounts, which included the impact of previous credit actions. Average active accounts decreased by 2.6% and 2.8% for the three and six months ended June 30, 2025, respectively.
Previous wording
Health & Wellness interest and fees on loans increased by $45 million, or 5.2%, for the three months ended March 31, 2025, primarily driven by growth in average loan receivables and higher loan receivables yield, reflecting the impact of product, pricing and policy changes, partially offset by higher reversals. The growth in average loan receivables includes the impact from the Ally Lending acquisition in March 2024. Purchase volume decreased 5.2%, for the three months ended March 31, 2025, reflecting lower spend in industries such as Dental, Cosmetic and Vision, combined with the impact of credit actions, partially offset by growth in Pet and Audiology. Average active accounts increased 2.2% for the three months ended March 31, 2025.
Current wording
Health & Wellness interest and fees on loans increased by $12 million, or 1.3%, and $57 million, or 3.2%, for the three and six months ended June 30, 2025, respectively. The increase in the three months ended June 30, 2025 was primarily driven by growth in average loan receivables and loan receivables yield, reflecting the impact of product, pricing and policy changes, partially offset by lower late fee incidence. The increase in the six months ended June 30, 2025 was primarily driven by growth in loan receivables yield, reflecting the impact of product, pricing and policy changes, partially offset by higher reversals.
Previous wording
Other income increased by $9 million, or 13.6%, for the three months ended March 31, 2025, primarily due lower loyalty costs and the impact of product, pricing, and policy change related fees, partially offset by lower commission fees following the Pets Best disposition.
Current wording
Other income increased by $18 million, or 37.5%, and $27 million, or 23.7%, for the three and six months ended June 30, 2025, respectively, primarily due to higher protection product revenue and the impact of product, pricing, and policy change related fees. The increase in the three months ended June 30, 2025 was partially offset by higher loyalty costs and the increase in the six months ended June 30, 2025 was partially offset by lower commission fees following the Pets Best disposition.
Previous wording
Other income for the three months ended March 31, 2024 in Corp, Other primarily included the gain on sale related to the Pets Best disposition of $1.1 billion.
Current wording
Other income for the six months ended June 30, 2024 in Corp, Other primarily included the gain on sale related to the Pets Best disposition of $1.1 billion.
Previous wording
Loan receivables decreased 4.9% to $99.6 billion at March 31, 2025 compared to $104.7 billion at December 31, 2024, primarily driven by the seasonality of our business and a reduction in purchase volume.
Current wording
Loan receivables decreased 4.7% to $99.8 billion at June 30, 2025, compared to $104.7 billion at December 31, 2024, primarily driven by the seasonality of our business, lower purchase volume and higher payment rates.
Previous wording
Loan receivables at March 31, 2025 decreased 2.1% compared to $101.7 billion at March 31, 2024 driven by lower purchase volume.
Current wording
Loan receivables at June 30, 2025 decreased 2.5% compared to $102.3 billion at June 30, 2024 driven by lower purchase volume and higher payment rates.
Previous wording
Over-30 day loan delinquencies as a percentage of period-end loan receivables decreased to 4.52% at March 31, 2025 from 4.74% at March 31, 2024, and decreased from 4.70% at December 31, 2024. These decreases include the impact of the credit actions we have previously taken across our portfolio.
Current wording
Over-30 day loan delinquencies as a percentage of period-end loan receivables decreased to 4.18% at June 30, 2025 from 4.47% at June 30, 2024, and decreased from 4.70% at December 31, 2024. These decreases include the impact of the previous credit actions we have taken across our portfolio.
Previous wording
The table below sets forth the net charge-offs and ratio of annualized net charge-offs to average loan receivables, including held for sale, (“net charge-off rate”) for the periods indicated.
Current wording
The tables below sets forth the net charge-offs and ratio of annualized net charge-offs to average loan receivables, including held for sale, (“net charge-off rate”) for the periods indicated.
Previous wording
The allowance for credit losses totaled $10.8 billion at March 31, 2025, compared to $10.9 billion at December 31, 2024, respectively, and $10.9 billion at March 31, 2024, and reflects our estimate of expected credit losses for the life of the loan receivables on our Condensed Consolidated Statements of Financial Position. Our allowance for credit losses as a percentage of total period end loan receivables increased to 10.87% at March 31, 2025, from 10.44% at December 31, 2024 and increased from 10.72% at March 31, 2024.
Current wording
The allowance for credit losses totaled $10.6 billion at June 30, 2025, compared to $10.9 billion at December 31, 2024, respectively, and $11.0 billion at June 30, 2024, and reflects our estimate of expected credit losses for the life of the loan receivables on our Condensed Consolidated Statements of Financial Position.
Previous wording
The decrease in allowance for credit losses compared to December 31, 2024 and March 31, 2024 primarily reflects the decrease in both loan receivables and delinquent balances as a percentage of loan receivables, as compared to the prior year period, as well as expectations of the macroeconomic environment. See Note 5. Loan Receivables and Allowance for Credit Losses to our condensed consolidated financial statements for additional information.
Current wording
The decrease in allowance for credit losses compared to December 31, 2024 and June 30, 2024 primarily reflects the decrease in both loan receivables and delinquent balances as a percentage of loan receivables, as compared to the prior year period, as well as expectations of the macroeconomic environment. Our allowance for credit losses as a percentage of total period end loan receivables increased to 10.59% at June 30, 2025, from 10.44% at December 31, 2024 and decreased from 10.74% at June 30, 2024. See Note 5. Loan Receivables and Allowance for Credit Losses to our condensed consolidated financial statements for additional information.
Previous wording
The following table summarizes information concerning our funding sources during the periods indicated:
Current wording
The following tables summarize information concerning our funding sources during the periods indicated:
Showing the first 40 of 106 pairs. Open the source sections for the rest.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
Diversified & Value interest and fees on loans decreased by $6 million, or 0.5%, and $42 million, or 1.8%, for the three and six months ended June 30, 2025, respectively, primarily driven by lower loan receivables yield, reflecting lower benchmark rates and lower late fee incidence, partially offset by the impact of product, pricing and policy changes.
Current report — wording carried from elsewhere
(1)Excludes $415 million and $393 million average balance of non-interest-bearing deposits for the six months ended June 30, 2025 and 2024, respectively. Non-interest-bearing deposits comprise less than 10% of total deposits for the six months ended June 30, 2025 and 2024.
Current report — wording carried from elsewhere
The declaration and payment of future dividends to holders of our common and preferred stock will be at the discretion of the Board and will depend on many factors. In addition, subject to approval from the Board, we have the ability to issue further series of preferred stock, up to a maximum of 300 million shares authorized for issuance.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
We evaluate our Allowance for Credit Losses quarterly. Our estimation process includes analysis of historical data, and there is a significant amount of judgment applied in selecting inputs and analyzing the results produced by the model to determine the Allowance for Credit Losses. Other data utilized in our estimate of expected losses, includes past performance, changes in underwriting policies, bankruptcy activity such as filings, loan volumes and amounts. We also evaluate portfolio risk management techniques applied to various accounts, historical behavior of different account vintages, account seasoning, economic conditions, recent trends in delinquencies and net charge-offs, account collection management including the impact of modifications made to borrowers experiencing financial difficulty, forecasting uncertainties, expectations about the future, and a qualitative assessment of the adequacy of the allowance for credit losses. Additionally, the estimate of expected credit losses includes expected recoveries of amounts previously charged-off and expected to be charged-off.
Previous report — wording carried elsewhere
At both March 31, 2025 and December 31, 2024, we had: