Synchrony Financial
For the period ended Mar 31, 2026. Filed Apr 23, 2026.
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.
Mar 31, 2026 · Filed Apr 23, 2026
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 2025-09-30; filed 2025-10-22.
0001601712-25-000259
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 nine months ended September 30, 2025 and 2024Condensed Consolidated Statements of Comprehensive Income –Three and nine months ended September 30, 2025 and 2024Condensed Consolidated Statements of Financial Position –September 30, 2025 and December 31, 2024Condensed Consolidated Statements of Changes in Equity –Three and nine months ended September 30, 2025 and 2024Condensed Consolidated Statements of Cash Flows –Nine months ended September 30, 2025 and 2024Notes to Condensed Consolidated Financial StatementsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-04-23.
0001601712-26-000016
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, 2026 and 2025Condensed Consolidated Statements of Comprehensive Income –Three months ended March 31, 2026 and 2025Condensed Consolidated Statements of Financial Position –March 31, 2026 and December 31, 2025Condensed Consolidated Statements of Changes in Equity –Three months ended March 31, 2026 and 2025Condensed Consolidated Statements of Cash Flows –Three months ended March 31, 2026 and 2025Notes 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 424 previous paragraphs and 364 current paragraphs.
208 unchanged; 112 reworded; 41 added; 99 removed; 5 previous and 3 current paragraphs rearranged.
Tables are not compared: 81 previous and 72 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 (41)
Current report
Our business is typically influenced by a seasonal pattern, with purchase volume and loan receivables typically rising beginning in the third quarter and generally peaking in fourth quarter, including the impacts of consumer spending for U.S. holidays, then declining through the first and second quarters as customers pay their balances down.
Current report
Delinquency rates and delinquent loan receivables balances typically rise in the third and fourth quarters as customer payment rates decline, resulting in higher net charge-off rates in the first half of the calendar year. Delinquent loan receivables at year-end are more likely to return to current status than those delinquent at interim period ends. Consistent with this historical experience, our allowance for credit losses as a percentage of total loan receivables is generally higher at interim period ends than at year-end and may increase mid-year even when certain credit metrics improve.
Current report
These seasonal impacts to purchase volume and our loan receivables balances may materially affect our results of operations, delinquency metrics and the allowance for credit losses as a percentage of total loan receivables with the most pronounced effects typically occurring between the fourth quarter and the subsequent first quarter. Our loan receivables decreased by $3.7 billion, or 3.6% to $100.1 billion at March 31, 2026 compared to $103.8 billion at December 31, 2025, and our allowance for credit losses as a percentage of total loan receivables increased to 10.42% at March 31, 2026, from 10.06% at December 31, 2025, reflecting these same seasonal trends.
Current report
Earnings
Current report
Net earnings increased to $805 million from $757 million for the three months ended March 31, 2026, primarily reflecting the following key drivers:
Current report
•Increase in net interest income of $171 million, primarily driven by lower interest expense and an increase in interest and fees on loans of 1.9%, partially offset by lower interest income on our liquidity portfolio.
Current report
•Decrease in provision for credit losses of $156 million, primarily driven by lower net charge-offs, partially offset by a $97 million reserve release in the prior year period.
Current report
•These drivers were partially offset by higher retailer share arrangements of $175 million and higher other expense of $73 million.
Current report
Loan receivables and Asset Quality
Current report
•Loan receivables were flat at $100.1 billion at March 31, 2026, reflecting higher purchase volume offset by the effects of higher payment rates.
Current report
Funding, Liquidity and Capital
Current report
•In April 2026, the Company announced that the Board approved a new share repurchase program of up to $6.5 billion of the Company’s common stock, which commences in the second quarter of 2026 and, in a change from our prior share repurchase programs, does not have an expiration date. The new share repurchase program replaces the Company’s prior program, which was scheduled to expire on June 30, 2026. The pace and amount of share repurchases under the program are flexible, and will be executed from time to time subject to various factors, including capital levels, financial performance, market conditions and legal and regulatory requirements, and in accordance with our capital plans. In addition, the Board approved a planned increase to our quarterly dividend to $0.34 per common share commencing in the third quarter of 2026.
Current report
•Expanded CareCredit partnerships with pet insurance providers, Figo and Embrace, to enable reimbursements back to CareCredit accounts, making the solution available for more than 1.7 million pets.
Current report
Average loan receivables, including held for sale, were flat compared to the three months ended March 31, 2025, reflecting higher purchase volume offset by the effects of higher payment rates. Purchase volume increased by 5.6% for the three months ended March 31, 2026, primarily reflecting the impacts of partner expansion and higher spend per average active account.
Current report
Provision for credit losses decreased by $156 million, or 10.5%, for the three months ended March 31, 2026, primarily driven by lower net charge-offs, partially offset by a reserve release in the prior year period.
Current report
The reserve release for the three months ended March 31, 2026 was $11 million, as compared to a reserve release of $97 million in the prior year period.
Current report
Other income decreased by $16 million to $133 million, for the three months ended March 31, 2026.
Current report
The decrease in the three months ended March 31, 2026 was primarily driven by higher loyalty costs, partially offset by higher interchange revenue and protection product revenue.
Current report
The increase in the three months ended March 31, 2026 was primarily driven by higher information processing costs and higher other expense. The increase in information processing costs was primarily related to technology investments, as well as higher association fees related to the purchase volume growth on our co-branded cards. The increase in other expense was primarily driven by higher operational losses.
Current report
Purchase volume was flat for the three months ended March 31, 2026, reflecting higher spend per average active account and partner expansion in Furniture and Electronics, offset by selective spend in Home Improvement and lower average active accounts. Average active accounts decreased by 5.9% for the three months ended March 31, 2026.
Current report
Other income decreased by $1 million, or 1.8%, for the three months ended March 31, 2026, primarily due to higher loyalty costs.
Current report
Digital interest and fees on loans increased by $88 million, or 5.7%, for the three months ended March 31, 2026, primarily driven by higher loan receivables yield, reflecting the impacts of product, pricing and policy changes, as well as higher average loan receivables, partially offset by lower benchmark rates.
Current report
Purchase volume increased 8.7%, for the three months ended March 31, 2026, primarily reflecting the impact of partner expansion, in addition to higher spend per average active account. Average active accounts increased by 1.5% for the three months ended March 31, 2026.
Current report
Other income decreased by $18 million, for the three months ended March 31, 2026. The decrease in the three months ended March 31, 2026 was primarily due to higher loyalty costs, partially offset by higher interchange revenue.
Current report
Purchase volume increased by 6.6% for the three months ended March 31, 2026, primarily driven by Other Apparel and Goods and Luxury, partially offset by lower average active accounts. Average active accounts decreased 2.5% for the three months ended March 31, 2026.
Current report
Loan receivables decreased 3.6% to $100.1 billion at March 31, 2026, compared to $103.8 billion at December 31, 2025, primarily driven by the seasonality of our business.
Current report
Loan receivables were flat compared to $99.6 billion at March 31, 2025 reflecting higher purchase volume offset by the effects of higher payment rates.
Current report
Over-30 day loan delinquencies as a percentage of period-end loan receivables was 4.54% at March 31, 2026, remaining generally in line with prior periods, increasing by two basis points from 4.52% at March 31, 2025, and by five basis points from 4.49% at December 31, 2025.
Current report
The allowance for credit losses remained flat compared to December 31, 2025, reflecting asset quality trends in line with the prior quarter.
Current report
During the three months ended March 31, 2026, we repurchased $900 million of common stock as part of our share repurchase program. In April 2026, the Company announced that the Board approved a new share repurchase program of up to $6.5 billion of the Company’s common stock, which commences in the second quarter of 2026 and, in a change from our prior share repurchase programs, does not have an expiration date. The new share repurchase program replaces the Company’s prior program, which was scheduled to expire on June 30, 2026. The pace and amount of share repurchases under the program are flexible, and will be executed from time to time subject to various factors, including capital levels, financial performance, market conditions and legal and regulatory requirements, and in accordance with our capital plans.
Current report
The Company's share repurchase program may be executed through open market purchases or privately negotiated transactions, including through Rule 10b5-1 plans, and may be modified, suspended or terminated at any time.
Current report
See Note 2. Basis of Presentation and Summary of Significant Accounting Policies - New Accounting Standards, to our condensed consolidated financial statements for additional information related to recent accounting pronouncements.
Current report
On March 19, 2026, the federal banking agencies issued several rulemaking proposals to revise the U.S. regulatory capital framework. If finalized as proposed, the new rule would revise the standardized approach to calculating risk-weighted assets, including a 10% reduction in risk-weighting of retail exposures, and would require Category III and Category IV banking organizations, including Synchrony, to include most elements of accumulated other comprehensive income (“AOCI”) in their common equity Tier 1 capital, thereby requiring all net unrealized gains and losses on holdings of available-for-sale debt securities from changes in fair value to flow through to regulatory capital, the effects of which would be phased in over a five-year transitional period. We are evaluating the potential impacts of the proposals on the Company.
Current report
New Accounting Standards
Current report
In November 2025, the FASB issued ASU 2025-08, Financial Instruments – Credit Losses (Topic 326) – Purchased Loans. ASU expands the population of purchased financial assets subject to the gross-up approach in Topic 326. As a result of this update, loans (excluding credit cards) acquired without credit deterioration and deemed “seasoned” as defined in the ASU will follow the gross-up approach at acquisition and the initial allowance for credit losses at acquisition is added to the amortized cost basis of the loans. The Company is currently evaluating the updated guidance, which is effective prospectively beginning January 2027, with early adoption permitted.
Current report
In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270), which improves the navigability of the required interim disclosures, provides clarity as to when it is applicable, and provides additional guidance on what disclosures are required in interim reporting periods by establishing a disclosure principle. The guidance is effective for interim reporting periods beginning in 2028 and can be applied either prospectively or retrospectively. The Company is currently evaluating the updated guidance to assess the impact and determining its method of adoption.
Current report
Loan Receivables Acquired
Current report
In April 2026, we completed our acquisition of the Lowe's commercial co-branded credit card portfolio, comprising of approximately $0.7 billion of outstanding loan receivables. This transaction was accounted for as an asset purchase.
Current report
Allowance for Credit Losses
Current report
(a) Carrying value approximates fair value as the financial assets and liabilities are liquid in nature or have a short-term maturity.
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Removed paragraphs (99)
Previous report
CFPB final rule on credit card late fees.
Previous report
On March 5, 2024, the CFPB released a final rule amending its regulations that implement the Truth in Lending Act to lower the safe harbor dollar amount for credit card late fees from the prior $30 (adjusted to $41 for each subsequent late payment within the next six billing cycles) to $8 and to eliminate the automatic annual inflation adjustment to such safe harbor dollar amount. The final rule had an original effective date of May 14, 2024. Industry organizations challenged the final rule in court, and on May 10, 2024, the United States District Court for the Northern District of Texas granted an injunction and stay of the final rule.
Previous report
On April 14, 2025, in the litigation challenging the final late fee rule, the CFPB and the plaintiff industry organizations filed a joint motion asking the court to vacate the final rule and dismiss the case. On April 15, 2025, the court granted this motion. As such, the final rule has been vacated.
Previous report
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 report
Extended duration of our credit card program agreements.
Previous 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. 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 report
We experience fluctuations in purchase volume and the level of loan receivables as a result of higher seasonal consumer spending and payment patterns that typically result in an increase of loan receivables from August through a peak in late December, with reductions in loan receivables typically occurring over the first and second quarters of the following year as customers pay their balances down.
Previous report
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 report
In addition to the seasonal variance in loan receivables discussed above, we also typically experience a seasonal increase in delinquency rates and delinquent loan receivables balances during the third and fourth quarters of each year due to lower customer payment rates, resulting in higher net charge-off rates in the first half of the calendar year. Our delinquency rates and delinquent loan receivables balances typically decrease during the subsequent first and second quarters as customers begin to pay down their loan balances and return to current status, resulting in lower net charge-off rates in the second half of the calendar year. Because customers who were delinquent during the fourth quarter of a calendar year have a higher probability of returning to current status when compared to customers who are delinquent at the end of each of our interim reporting periods, we expect that a higher proportion of delinquent accounts outstanding at an interim period end will result in charge-offs, as compared to delinquent accounts outstanding at a year end. Consistent with this historical experience, we generally experience a higher allowance for credit losses as a percentage of total loan receivables at the end of an interim period, as compared to the end of a calendar year. In addition, even in instances of improving credit metrics such as declining past due amounts, we may experience an increase in our allowance for credit losses at an interim period end compared to the prior year end, reflecting these same seasonal trends.
Previous report
•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 report
•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 report
•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 report
•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 report
•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 report
•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 report
•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 report
•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 report
•In October 2025, we acquired Versatile Credit, a leading multi-source financing platform connecting merchants, lenders and consumers through point-of-sale solutions.
Previous report
•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 report
•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 report
•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 report
•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 report
•In our Lifestyle sales platform, we announced our new partnership with Toro and extended our program agreement with American Eagle.
Previous report
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 report
Summary Earnings
Previous report
The following table sets forth our results of operations for the periods indicated.
Previous report
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 report
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.
Previous report
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 report
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 report
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 report
The increases in the three and nine months ended September 30, 2025 were primarily driven by increases in employee costs and higher information processing costs related to technology investments, partially offset by 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 the nine months ended September 30, 2025 was also partially offset by lower operational losses.
Previous 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 has completed its initial evaluation of the provisions of the Act and does not expect it to have a material impact on our Consolidated Financial Statements.
Previous report
The increases in loan receivables yield reflect the impact of product, pricing and policy changes, partially offset by lower late fee incidence. The decreases in average loan receivables were primarily driven by lower purchase volume and higher payment rates. Purchase volume decreased 1.4% and 5.9% for the three and nine months ended September 30, 2025, respectively, reflecting consumers continuing to manage discretionary spend, lower average active accounts and the impacts from our previous credit actions, partially offset by strong growth in spend per account. Average active accounts decreased by 6.7% and 6.2% for the three and nine months ended September 30, 2025, respectively.
Previous report
Other income was flat for the three months ended September 30, 2025, and increased $38 million, or 30.6%, for the nine months ended September 30, 2025. The increase in the nine months ended September 30, 2025 was primarily due to the impact of product, pricing and policy change related fees.
Previous report
Purchase volume increased 2.8%, for the three months ended September 30, 2025, reflecting retailer performance and growth in out-of-partner spend, partially offset by lower active accounts and impacts from our prior credit actions. Purchase volume was flat for the nine months ended September 30, 2025, as growth in spend per account was offset by the factors discussed above for the three months ended September 30, 2025. Average active accounts decreased by 2.5% and 3.5% for the three and nine months ended September 30, 2025, respectively.
Previous report
Purchase volume decreased by 2.8% and 5.0% for the three and nine months ended September 30, 2025, respectively, primarily reflecting lower average active accounts, as well as lower spend in Outdoor and Specialty as consumers continued to manage discretionary spend and the impacts from our previous credit actions. The decrease in the nine months ended September 30, 2025 was also driven by lower spend in Luxury.
Previous report
Other income for the nine months ended September 30, 2024 in Corp, Other primarily included the gain on sale related to the Pets Best disposition of $1.1 billion.
Previous report
Loan receivables decreased 4.3% to $100.2 billion at September 30, 2025, compared to $104.7 billion at December 31, 2024, and decreased 2.0% compared to $102.2 billion at September 30, 2024. These decreases were primarily driven by the combination of lower purchase volume in the nine months ended September 30, 2025 and higher payment rates, as well as the seasonality of our business which also impacted the decrease compared to December 31, 2024.
Previous 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 on our Condensed Consolidated Statements of Financial Position in the second quarter of 2025.
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Reworded paragraphs (112)
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 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.
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 months ended March 31, 2026, we financed $43.0 billion of purchase volume and had 68.8 million average active accounts and at March 31, 2026, we had $100.1 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 September 30, 2025, we had $79.9 billion in deposits, which represented 85% 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 March 31, 2026, we had $82.9 billion in deposits, which represented 83% of our total funding sources.
Previous wording
Our Home & Auto sales platform provides comprehensive payments and financing solutions with integrated in-store and digital experiences through a broad network of partners and merchants providing home and automotive merchandise and services, as well as our Synchrony Car Care network and Synchrony HOME credit card offering. In March 2024, we completed our acquisition of Ally Financial Inc.'s point-of-sale financing business ("Ally Lending"), which deepened our presence in the home improvement sector, including specialty areas such as roofing, HVAC and windows. Our Home & Auto sales platform partners include a wide range of key retailers in the home improvement, furniture, bedding, flooring, appliance and electronics industry, such as Ashley HomeStores, Inc., Floor & Decor, Lowe's, and Mattress Firm, as well as automotive merchandise and services, such as Chevron and Discount Tire. In addition, we also have program agreements with manufacturers, buying groups and industry associations, such as Generac, Nationwide Marketing Group and the Home Furnishings Association.
Current wording
Our Home & Auto sales platform provides comprehensive payments and financing solutions with integrated in-store and digital experiences through a broad network of partners and merchants providing home and automotive merchandise and services, as well as our Synchrony Car Care network and Synchrony HOME credit card offering. Our Home & Auto sales platform partners include a wide range of key retailers in the home improvement, furniture, bedding, flooring, appliance and electronics industries, such as Ashley HomeStores, Inc., Floor & Decor, Lowe's, and Mattress Firm, as well as automotive merchandise and services, such as Chevron and Discount Tire. In addition, we also have program agreements with manufacturers, buying groups and industry associations, such as Generac, Nationwide Marketing Group and the Home Furnishings Association.
Previous wording
Our Digital sales platform provides comprehensive payments and financing solutions with integrated digital experiences through partners and merchants who primarily engage with their consumers through digital channels. Our Digital sales platform includes key partners delivering digital payment solutions, such as PayPal, including our Venmo program, online marketplaces, such as Amazon and eBay, and digital-first brands and merchants, such as the Qurate brands, Verizon, and Virgin Red.
Current wording
Our Digital sales platform provides comprehensive payments and financing solutions with integrated digital experiences through partners and merchants who primarily engage with their consumers through digital channels. Our Digital sales platform includes key partners delivering digital payment solutions, such as PayPal, including our Venmo program, online marketplaces, such as Amazon, and digital-first brands and merchants, such as the QVC Group, Inc., Verizon and Virgin Red.
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 six large retail partners: Belk, Fleet Farm, JCPenney, Sam's Club, TJX Companies, Inc. and Walmart.
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, OnePay, Sam's Club and TJX Companies, Inc.
Previous 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.
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, Pandora, Polaris, Suzuki and Sweetwater.
Previous wording
Corp, Other includes activity and balances related to certain program agreements with retail partners and merchants that will not be renewed beyond their current expiration date and certain programs that were previously terminated, which are not managed within the five sales platforms discussed above. Corp, Other also includes amounts related to changes in the fair value of equity investments and realized gains or losses associated with the sale of businesses and investments.
Current wording
Corp, Other includes activity and balances related to certain program agreements with retail partners and merchants that will not be renewed beyond their current expiration date and certain programs that were previously terminated, which are not managed within the five sales platforms discussed above, as well as fee income generated from Versatile Credit. Corp, Other also includes amounts related to changes in the fair value of equity investments and realized gains or losses associated with the sale of businesses and investments.
Previous wording
•Private Label Credit Cards. Private label credit cards are partner-branded credit cards (e.g., Lowe’s or Amazon) or program-branded credit cards (e.g., Synchrony Car Care or CareCredit) that are used primarily for the purchase of goods and services from the partner or within the program network. In addition, in some cases, cardholders may be permitted to access their credit card accounts for cash advances. Credit under our private label credit cards typically is extended either on standard terms only or pursuant to a promotional financing offer.
Current wording
•Private Label Credit Cards. Private label credit cards are partner-branded credit cards (e.g., Lowe’s or Amazon) or program-branded credit cards (e.g., Synchrony Car Care or CareCredit) that are used primarily for the purchase of goods and services from the partner or within the program network. In addition, in some cases, cardholders may be permitted to access their credit card accounts for cash advances. Credit under our private label credit cards is extended either on standard terms only or pursuant to a promotional financing offer.
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 31% of our total loan receivables portfolio at September 30, 2025.
Current wording
•Co-Branded Cards. Our co-branded cards comprise our patented Dual Cards and general purpose co-branded credit cards. Our 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 a Synchrony-branded general purpose credit card. Our co-branded cards are offered across all of our sales platforms and credit is typically extended on standard terms only. We offer co-branded cards through over 15 of our large partners, of which the majority are Dual Cards, as well as our CareCredit Dual Card. Our consumer co-branded cards totaled 34% of our total loan receivables portfolio at March 31, 2026.
Previous wording
We originate secured installment loans to consumers (and a limited number of commercial customers) in the United States, primarily for power products in our Outdoor market (motorcycles, ATVs and lawn and garden). We also offer unsecured installment loans primarily in our Home & Auto and Health & Wellness sales platforms and through our various other installment products, such as our Synchrony Pay Later solutions, including pay monthly and Pay in 4 products, for short-term loans. Installment loans are closed-end credit accounts where the customer pays down the outstanding balance in installments. Installment loans are generally assessed periodic finance charges using fixed interest rates.
Current wording
We originate secured installment loans to consumers in the United States, primarily in our Lifestyle sales platform for power products in our Outdoor market (motorcycles, ATVs and lawn and garden). We also offer unsecured installment loans to consumers across all of our sales platforms through various products, such as Synchrony's Pay Later solutions. Installment loans are closed-end credit accounts where the customer pays down the outstanding balance in installments. Installment loans, other than our Synchrony Pay Later Pay in 4 product, are generally assessed periodic finance charges using fixed interest rates.
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 nine months ended September 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 2025 Form 10-K. For a discussion of how certain trends and conditions impacted the three months ended March 31, 2026, see “—Results of Operations.”
Previous wording
Highlights for the Three and Nine Months Ended September 30, 2025
Current wording
Summary Highlights for the Three Months Ended March 31, 2026
Previous 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.
Current wording
Trends disclosed below are compared to the three months ended March 31, 2025, as applicable, except as otherwise noted.
Previous 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.
Current wording
•Over-30 day loan delinquencies as a percentage of period-end loan receivables increased 2 basis points to 4.54% at March 31, 2026 from 4.52% at March 31, 2025. The net charge-off rate decreased 96 basis points to 5.42% for the three months ended March 31, 2026.
Previous 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.
Current wording
•Our allowance coverage ratio (allowance for credit losses as a percentage of period-end loan receivables) decreased to 10.42% at March 31, 2026, as compared to 10.87% at March 31, 2025.
Previous 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.
Current wording
•At March 31, 2026, deposits represented 83% of our total funding sources. Total deposits increased by 2.2% to $82.9 billion at March 31, 2026, compared to December 31, 2025.
Previous wording
•During the nine months ended September 30, 2025, we repurchased $2.0 billion of our outstanding common stock, and declared and paid cash dividends of $0.85 per share, or $321 million in the aggregate.
Current wording
•During the three months ended March 31, 2026, we repurchased $900 million of our outstanding common stock, and declared and paid cash dividends of $0.30 per share, or $104 million in the aggregate.
Previous 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:
Current wording
During the three months ended March 31, 2026, and to date, we continued to expand and diversify our portfolio with the addition or renewal of more than 15 partners, which included the following:
Previous wording
The following tables set forth information for the periods indicated regarding average balance sheet data, which are used in the discussion of interest income, interest expense and net interest income that follows.
Current wording
The following table sets forth information for the periods indicated regarding average balance sheet data, which are used in the discussion of interest income, interest expense and net interest income that follows:
Previous 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.
Current wording
(2)Includes average restricted cash balances of $60 million and $690 million for the three months ended March 31, 2026 and 2025, respectively.
Previous 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.
Current wording
(3)Interest income on loan receivables includes fees on loans, which primarily consist of late fees on our credit products, of $559 million and $588 million for the three months ended March 31, 2026 and 2025, respectively.
Previous 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.
Current wording
Interest income increased by $53 million, or 1.0% for the three months ended March 31, 2026, reflecting an increase of 1.9% in interest and fees on loans, partially offset by lower interest income from our liquidity portfolio. The increase in interest and fees on loans was primarily driven by the impact of our product, pricing and policy changes, partially offset by lower benchmark rates.
Previous 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.
Current wording
The yield on average interest-earning assets increased for the three months ended March 31, 2026 primarily due to increases in the yield on average loan receivables and the mix of loan receivables as a percentage of interest-earning assets versus the prior year, partially offset by a lower yield on our liquidity portfolio. The loan receivables yield increased 47 basis points to 21.80% for the three months ended March 31, 2026, primarily driven by the impacts of our product, pricing and policy changes, partially offset by the impact of lower benchmark rates.
Previous 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.
Current wording
Interest expense decreased by $118 million, or 10.9%, for the three months ended March 31, 2026, primarily due to lower interest-bearing liabilities cost associated with lower benchmark rates. Our cost of funds decreased to 4.04% for the three months ended March 31, 2026, compared to 4.48% for the three months ended March 31, 2025.
Previous 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.
Current wording
Net interest income increased by $171 million, or 3.8%, for the three months ended March 31, 2026, resulting from the changes in interest income and interest expense discussed above.
Previous 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.
Current wording
Retailer share arrangements increased by $175 million, or 19.6%, for the three months ended March 31, 2026, reflecting program performance which included lower net charge-offs and the impact of our product, pricing and policy changes.
Previous 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.
Current wording
Net charge-offs for the three months ended March 31, 2026 decreased by $242 million. The net charge-off rate for the three months ended March 31, 2026 decreased by 96 basis points to 5.42%, as compared to the prior year period, and we expect our net charge-off rate for the year ended December 31, 2026 will be below our long-term target range of 5.5% to 6.0%.
Previous 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.
Current wording
Other expense increased by $73 million, or 5.9%, for the three months ended March 31, 2026.
Previous wording
The effective tax rate for the three months ended September 30, 2025 increased compared to the same period in the prior year primarily due to higher state tax rates in the current year and the resolution of certain tax matters in the prior year period. The effective tax rate for the nine months ended September 30, 2025 decreased primarily due to the tax benefit from remeasuring our deferred tax assets in the second quarter of 2025 for increases in state tax rates. 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 months ended March 31, 2026 was flat compared to the prior year. 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 and nine months ended September 30, 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 months ended March 31, 2026, for each of our five sales platforms and Corp, Other.
Previous wording
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 were 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 wording
In 2025, we sold $0.2 billion of loan receivables associated with a Home & Auto partner program agreement. All related prior-period reported metrics for our Home & Auto sales platform and Corp, Other have been recast to reflect activity related to this portfolio within Corp, Other below.
Previous wording
Home & Auto interest and fees on loans decreased by $36 million, or 2.4%, and by $20 million, or 0.5%, for the three and nine months ended September 30, 2025, respectively, primarily driven by lower average loan receivables, partially offset by higher loan receivables yield.
Current wording
Home & Auto interest and fees on loans decreased by $23 million, or 1.6%, for the three months ended March 31, 2026, primarily driven by lower average loan receivables, partially offset by higher loan receivables yield. The decrease in average loan receivables was primarily driven by higher payment rates. The increase in loan receivables yield reflects the impact of product, pricing and policy changes, partially offset by lower late fee incidence.
Previous wording
Digital interest and fees on loans increased by $38 million, or 2.4%, and $47 million, or 1.0% for the three and nine months ended September 30, 2025, respectively, primarily driven by higher loan receivable yield, reflecting the impacts of product, pricing and policy changes, offset by lower benchmark rates and lower late fee incidence. Purchase volume increased by 5.2% and 2.0% for the three and nine months ended September 30, 2025, primarily driven by higher spend per account and customer response to enhanced product offerings and refreshed value propositions, partially offset by lower average active accounts and the impact from our previous credit actions. Average active accounts decreased by 0.5% and 1.9% for the three and nine months ended September 30, 2025, respectively.
Current wording
Purchase volume increased by 8.2% for the three months ended March 31, 2026, primarily driven by higher spend per average active account and customer response to enhanced product offerings and refreshed value propositions. Average active accounts increased by 2.7% for the three months ended March 31, 2026.
Previous wording
Diversified & Value interest and fees on loans decreased by $17 million, or 1.4%, and $59 million, or 1.6%, for the three and nine months ended September 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 wording
Diversified & Value interest and fees on loans increased by $17 million, or 1.4%, for the three months ended March 31, 2026, primarily driven by higher average loan receivables reflecting the impact of partner expansion, partially offset by a decrease in loan receivables yield. The decrease in loan receivables yield primarily reflects lower benchmark rates, partially offset by the impacts of product, pricing and policy changes.
Previous wording
Health & Wellness interest and fees on loans increased by $11 million, or 1.2%, and $68 million, or 2.5%, 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 an increase in loan receivables yield, reflecting the impact of product, pricing and policy changes, partially offset by lower late fee incidence. The nine months ended September 30, 2025 also reflects higher average loan receivables, partially offset by higher reversals.
Current wording
Health & Wellness interest and fees on loans increased by $34 million, or 3.7%, for the three months ended March 31, 2026. The increase in the three months ended March 31, 2026 was primarily driven by an increase in loan receivables yield, reflecting the impact of product, pricing and policy changes.
Previous wording
Purchase volume increased 2.8% for the three months ended September 30, 2025, as higher spend per account exceeded the impact of lower average active accounts, reflecting growth in Pet and Audiology, partially offset by lower spend in Cosmetic. Purchase volume decreased 1.5% for the nine months ended September 30, 2025 reflecting lower spend in Cosmetic and Dental, combined with the impact of previous credit actions, partially offset by growth in Pet and Audiology. Average active accounts decreased 0.9% and increased 0.4% for the three and nine months ended September 30, 2025, respectively.
Current wording
Purchase volume increased 2.6% for the three months ended March 31, 2026, reflecting growth in Pet and Audiology, partially offset by lower spend in Cosmetic and Dental. In addition, higher spend per average active account exceeded the impact of lower average active accounts. Average active accounts decreased 1.2% for the three months ended March 31, 2026.
Previous wording
Other income increased by $5 million, or 7.4%, and $32 million, or 17.6%, for the three and nine months ended September 30, 2025, respectively. The increase in the three months ended September 30, 2025 was primarily due to higher protection product revenue and higher interchange revenue, partially offset by higher loyalty costs. The increase in the nine months ended September 30, 2025 was primarily due to higher protection product revenue and the impact of product, pricing and policy change related fees.
Current wording
Other income increased by $5 million, or 6.7%, for the three months ended March 31, 2026. The increase in the three months ended March 31, 2026 was primarily due to higher protection product revenue and higher interchange revenue, partially offset by higher loyalty costs.
Previous wording
Lifestyle interest and fees on loans decreased by $6 million, or 2.2%, and increased by $3 million, or 0.4%, for the three and nine months ended September 30, 2025, respectively. The decrease for the three months ended September 30, 2025 was primarily driven by lower average loan receivables, lower late fee incidence and lower benchmark rates, partially offset by the impact of product, pricing and policy changes. The increase in the nine months ended September 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 wording
Lifestyle interest and fees on loans decreased by $3 million, or 1.1%, for the three months ended March 31, 2026. The decrease for the three months ended March 31, 2026 was primarily driven by lower average loan receivables and lower benchmark rates.
Previous wording
The tables below set 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 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:
Previous wording
The allowance for credit losses totaled $10.4 billion at September 30, 2025, compared to $10.9 billion at December 31, 2024, respectively, and $11.0 billion at September 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.
Current wording
The allowance for credit losses totaled $10.4 billion at March 31, 2026, compared to $10.4 billion at December 31, 2025, and $10.8 billion at March 31, 2025, and reflects our estimate of expected credit losses for the life of the loan receivables on our Condensed Consolidated Statements of Financial Position.
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Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
For long-term modifications made in the three months ended March 31, 2026 and 2025, the financial effect of these modifications reduced the weighted-average interest rates by 97% for all periods presented. For short-term modifications made in the three months ended March 31, 2026 and 2025, unpaid balances of $11 million and $15 million, respectively, were forgiven related to borrowers who successfully exited the program.
Current report — wording carried from elsewhere
The table below summarizes selected financial metrics of our consolidated securitization VIEs described above:
Current report — wording carried from elsewhere
The following tables present our assets measured at fair value on a recurring basis. Liabilities measured at fair value on a recurring basis were not material for the periods presented.
Rearranged previous paragraphs (5)
Previous report — wording carried elsewhere
(1)Excludes $413 million and $391 million average balance of non-interest-bearing deposits for the nine months ended September 30, 2025 and 2024, respectively. Non-interest-bearing deposits comprise less than 10% of total deposits for the nine months ended September 30, 2025 and 2024.
Previous report — wording carried elsewhere
During the nine months ended September 30, 2025, we made repayments totaling $1.8 billion of senior unsecured notes issued by Synchrony Financial and $900 million of senior unsecured notes issued by Synchrony Bank.
Previous report — wording carried elsewhere
The following table summarizes the maturities of the principal amount of our borrowings of consolidated securitization entities and senior and subordinated unsecured notes for the remainder of 2025 and over the next four years and thereafter:
Previous report — wording carried elsewhere
For Synchrony Financial to be a well-capitalized savings and loan holding company, the Bank must be well-capitalized and Synchrony Financial must not be subject to any written agreement, order, capital directive, or prompt corrective action directive issued by the Federal Reserve Board to meet and maintain a specific capital level for any capital measure.
Previous report — wording carried elsewhere
There have not been any changes to the basis of segmentation or the measurement of performance as compared to the 2024 Form 10-K.