Synchrony Financial

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 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.

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 nine months ended September 30, 2025, we financed $46.0 billion and $132.8 billion of purchase volume, respectively, and had 68.3 million and 68.7 million average active accounts, respectively, and at September 30, 2025, we had $100.2 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 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.

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 September 30, 2025, we had $79.9 billion in deposits, which represented 85% of our total funding sources.

Previous wording

Our Diversified & Value sales platform provides comprehensive payments and financing solutions with integrated in-store and digital experiences through large retail partners who deliver everyday value to consumers shopping for daily needs or important life moments. Our Diversified & Value sales platform is comprised of five large retail partners: Belk, Fleet Farm, JCPenney, Sam's Club and TJX Companies, Inc.

Current wording

Our Diversified & Value sales platform provides comprehensive payments and financing solutions with integrated in-store and digital experiences through large retail partners who deliver everyday value to consumers shopping for daily needs or important life moments. Our Diversified & Value sales platform is comprised of six large retail partners: Belk, Fleet Farm, JCPenney, Sam's Club, TJX Companies, Inc. and Walmart.

Previous wording

Lifestyle provides comprehensive payments and financing solutions with integrated in-store and digital experiences through partners and merchants who offer merchandise in power sports, outdoor power equipment, and other industries such as sporting goods, apparel, jewelry and music. Our Lifestyle sales platform partners include a wide range of key retailers in the apparel, specialty retail, outdoor, music and luxury industry, such as American Eagle, Dick's Sporting Goods, Guitar Center, Kawasaki, Pandora, Polaris, Suzuki and Sweetwater.

Current wording

Our Lifestyle sales platform provides comprehensive payments and financing solutions with integrated in-store and digital experiences through partners and merchants who offer merchandise in power sports, outdoor power equipment, and other industries such as sporting goods, apparel, jewelry and music. Our Lifestyle sales platform partners include a wide range of key retailers in the apparel, specialty retail, outdoor, music and luxury industry, such as American Eagle, Dick's Sporting Goods, Guitar Center, Kawasaki, Pandora, Polaris, Suzuki and Sweetwater.

Previous wording

•Dual Cards and General Purpose Co-Branded Cards. Our patented Dual Cards are credit cards that function as private label credit cards when used to purchase goods and services from our partners, and as general purpose credit cards when used to make purchases from other retailers wherever cards from those card networks are accepted or for cash advance transactions. We also offer general purpose co-branded credit cards that do not function as private label credit cards, as well as a Synchrony-branded general purpose credit card. Dual Cards and general purpose co-branded credit cards are offered across all of our sales platforms and credit is typically extended on standard terms only. We offer either Dual Cards or general purpose co-branded credit cards through over 15 of our large partners, of which the majority are Dual Cards, as well as our CareCredit Dual Card. Consumer Dual Cards and co-branded cards totaled 28% of our total loan receivables portfolio at June 30, 2025.

Current wording

•Dual Cards and General Purpose Co-Branded Cards. Our patented Dual Cards are credit cards that function as private label credit cards when used to purchase goods and services from our partners, and as general purpose credit cards when used to make purchases from other retailers wherever cards from those card networks are accepted or for cash advance transactions. We also offer general purpose co-branded credit cards that do not function as private label credit cards, as well as a Synchrony-branded general purpose credit card. Dual Cards and general purpose co-branded credit cards are offered across all of our sales platforms and credit is typically extended on standard terms only. We offer either Dual Cards or general purpose co-branded credit cards through over 15 of our large partners, of which the majority are Dual Cards, as well as our CareCredit Dual Card. Consumer Dual Cards and co-branded cards totaled 31% of our total loan receivables portfolio at September 30, 2025.

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 and six months ended June 30, 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 nine months ended September 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 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.

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 have made minor modifications to these changes in 2025.

Previous wording

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 wording

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. During the nine months ended September 30, 2025, we have added or renewed over 40 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.

Previous 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.

Current wording

Below are highlights of our performance for the three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024, as applicable, except as otherwise noted.

Previous 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.

Current wording

•Net earnings increased to $1.1 billion from $789 million and to $2.8 billion from $2.7 billion for the three and nine months ended September 30, 2025, respectively. The increases in the three and nine months ended September 30, 2025 were primarily driven by decreases in provision for credit losses and higher net interest income, partially offset by higher retailer share arrangements. The increase in the nine months ended September 30, 2025 was partially offset by the after-tax gain on sale related to Pets Best of $802 million in the prior year.

Previous wording

•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 wording

•Loan receivables decreased 2.0% to $100.2 billion at September 30, 2025 compared to $102.2 billion at September 30, 2024, reflecting the combination of lower purchase volume in the nine months ended September 30, 2025 and higher payment rates, as well as the reclassification of $0.2 billion of loan receivables to loan receivables held for sale in the second quarter of 2025.

Previous 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.

Current wording

•Net interest income increased 2.4% to $4.7 billion and 2.1% to $13.7 billion for the three and nine months ended September 30, 2025, respectively, primarily driven by lower interest expense, partially offset by lower interest income on investment securities. For the three and nine months ended September 30, 2025, interest expense decreased 14.0% and 10.1%, respectively, primarily due to lower interest-bearing liabilities cost associated with lower benchmark rates. Interest and fees on loans remained flat for both the three and nine months ended September 30, 2025, primarily reflecting the impact 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

•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 wording

•Retailer share arrangements increased 12.0% to $1.0 billion and 17.0% to $2.9 billion for the three and nine months ended September 30, 2025, respectively, primarily reflecting lower net charge-offs and the impact of our product, pricing and policy changes.

Previous 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.

Current wording

•Over-30 day loan delinquencies as a percentage of period-end loan receivables decreased 39 basis points to 4.39% at September 30, 2025 compared to September 30, 2024. The net charge-off rate decreased 90 basis points and 52 basis points to 5.16% and 5.74% for the three and nine months ended September 30, 2025, respectively.

Previous wording

•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 wording

•Provision for credit losses decreased by $451 million, or 28.2%, and $1.4 billion, or 26.9%, for the three and nine months ended September 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. Our allowance coverage ratio (allowance for credit losses as a percentage of period-end loan receivables) decreased to 10.35% at September 30, 2025, as compared to 10.79% at September 30, 2024.

Previous wording

•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 wording

•Other income increased by $8 million to $127 million, and decreased by $1.0 billion to $394 million for the three and nine months ended September 30, 2025, respectively. The increase in the three months ended September 30, 2025 reflects the impact of our product, pricing and policy change related fees. The decrease in the nine months ended September 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 $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 wording

•Other expense increased by $59 million, or 5.0%, and $164 million, or 4.6%, for the three and nine months ended September 30, 2025, respectively. The increases in the three and nine months ended September 30, 2025 were primarily driven by higher employee costs and costs related to technology investments, partially offset by late fee rule preparatory expenses in the prior year. The increase in the nine months ended September 30, 2025 was also partially offset by lower operational losses.

Previous 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.

Current wording

•At September 30, 2025, deposits represented 85% of our total funding sources. Total deposits decreased by 2.7% to $79.9 billion at September 30, 2025, compared to December 31, 2024.

Previous 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.

Current wording

•During the nine months ended September 30, 2025, we declared and paid cash dividends totaling $62 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 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.”

Current wording

•In April 2025 we announced that the Board 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. In September 2025, the Board approved an incremental share repurchase authorization of up to $1.0 billion, through June 30, 2026. At September 30, 2025 we had a total share repurchase authorization of $2.1 billion remaining. For more information, see “Capital—Dividend and Share Repurchases.”

Previous 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:

Current wording

During the nine months ended September 30, 2025, and to date, we continued to expand and diversify our portfolio with the addition or renewal of more than 40 partners, which included the following:

Previous wording

•In our Home & Auto sales platform, we extended our program agreements with Ashley HomeStores, Inc., Discount Tire, Gardner White and Home Furnishings Association.

Current wording

•In our Home & Auto sales platform, we extended our program agreements with Ashley HomeStores, Inc., Discount Tire, Gardner White, Home Furnishings Association and Regency Showrooms. In addition, we expanded our existing Lowe's commercial program and announced the acquisition of the Lowe’s commercial co-branded credit card portfolio, with loan receivables of approximately $0.8 billion, which is expected to close in the first half of 2026.

Previous wording

•In our Digital sales platform, we announced our new partnership with Sun Country Airlines and extended our program agreement with Amazon.

Current wording

•In our Digital sales platform, we extended our program agreement with Amazon and entered into our new partnership with Sun Country Airlines, launching its credit card program in September 2025.

Previous wording

•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 wording

•In our Diversified & Value sales platform, we entered into our new partnership with OnePay to become the exclusive issuer of a general purpose and private label credit card program at Walmart, which launched in September 2025.

Previous wording

•In our Health & Wellness sales platform, we expanded our network through our new partnership with Texas A&M University Veterinary Medical Teaching Hospital.

Current wording

•In our Health & Wellness sales platform, we expanded our network through our new partnerships with Dental Intelligence and Texas A&M University Veterinary Medical Teaching Hospital.

Previous wording

•In our Lifestyle sales platform, we extended our program agreement with American Eagle.

Current wording

•In our Lifestyle sales platform, we announced our new partnership with Toro and extended our program agreement with American Eagle.

Previous wording

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 wording

During the second quarter of 2025, we entered into an agreement to sell loan receivables associated with a Home & Auto partner program agreement and completed the sale in October 2025.

Previous 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.

Current wording

(2)Includes average restricted cash balances of $159 million and $57 million for the three months ended September 30, 2025 and 2024, respectively, and $495 million and $76 million for the nine months ended September 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 $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.

Current wording

(3)Interest income on loan receivables includes fees on loans, which primarily consist of late fees on our credit products, of $592 million and $652 million for the three months ended September 30, 2025 and 2024, respectively, and $1.7 billion and $1.9 billion for the nine months ended September 30, 2025 and 2024, respectively.

Previous 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.

Current wording

Interest income decreased 0.9% and 0.4% for the three and nine months ended September 30, 2025, respectively, reflecting flat interest and fees on loans and 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

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 wording

Average loan receivables, including held for sale, decreased 2.1% and 1.4% for the three and nine months ended September 30, 2025, respectively, primarily driven by lower purchase volume in the nine months ended September 30, 2025 and higher payment rates. Purchase volume increased by 2.3% and decreased by 1.0% for the three and nine months ended September 30, 2025, respectively, reflecting the continued impact of previous credit actions as well as selective consumer spending.

Previous 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.

Current wording

The yield on average interest-earning assets increased for the three and nine months ended September 30, 2025 primarily due to increases in the yield on average loan receivables, partially offset by a lower yield on our liquidity portfolio and a decrease in the percentage of interest-earning assets attributable to loan receivables. The loan receivables yield increased 35 basis points to 21.89% and 37 basis points to 21.58% for the three and nine months ended September 30, 2025, primarily 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 $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.

Current wording

Interest expense decreased by $165 million to $1.0 billion and $354 million to $3.2 billion, for the three and nine months ended September 30, 2025, respectively, primarily due to lower interest-bearing liabilities cost associated with lower benchmark rates. Our cost of funds decreased to 4.20% and 4.34% for the three and nine months ended September 30, 2025, respectively, compared to 4.78% and 4.77% for the three and nine months ended September 30, 2024, respectively.

Previous 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.

Current wording

Net interest income increased by $111 million, or 2.4%, and $286 million, or 2.1%, for the three and nine months ended September 30, 2025, respectively, resulting from the changes in interest income and interest expense discussed above.

Previous 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.

Current wording

Retailer share arrangements increased by $110 million, or 12.0% and $423 million to 17.0%, for the three and nine months ended September 30, 2025, respectively, reflecting lower net charge-offs and the impact of our product, pricing and policy changes.

Previous wording

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 wording

The reserve releases for the three and nine months ended September 30, 2025 were $152 million and $514 million, respectively, as compared to reserve builds of $44 million and $413 million, respectively, in the prior year periods. The current year reserve releases included the impact of a $45 million reserve build for off-balance sheet credit exposures associated with the acquisition of the Lowe's commercial co-branded credit card portfolio, expected to close in the first half of 2026. The reserve build in the nine months ended September 30, 2024 included $180 million related to the Ally Lending acquisition.

Previous wording

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 wording

Net charge-offs for the three and nine months ended September 30, 2025 decreased by $255 million and $462 million, respectively. The net charge-off rate for the three and nine months ended September 30, 2025 decreased by 90 basis points to 5.16%, and 52 basis points to 5.74%, respectively, as compared to the prior year periods.

Previous wording

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 wording

Other income increased by $8 million to $127 million, and decreased by $1.0 billion, to $394 million, for the three and nine months ended September 30, 2025, respectively.

Previous 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.

Current wording

The increase in the three months ended September 30, 2025 included the impact of our product, pricing and policy change related fees in the current year period. The decrease in the nine months ended September 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 $68 million, or 5.8%, and $105 million, or 4.4% for the three and six months ended June 30, 2025, respectively.

Current wording

Other expense increased by $59 million, or 5.0%, and $164 million, or 4.6% for the three and nine months ended September 30, 2025, respectively.