Synchrony Financial
For the period ended Jun 30, 2026. Filed Jul 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.
Jun 30, 2026 · Filed Jul 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 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 StatementsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-23.
0001601712-26-000033
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsIndex to Condensed Consolidated Financial StatementsCondensed Consolidated Statements of Earnings –Three and six months ended June 30, 2026 and 2025Condensed Consolidated Statements of Comprehensive Income –Three and six months ended June 30, 2026 and 2025Condensed Consolidated Statements of Financial Position –June 30, 2026 and December 31, 2025Condensed Consolidated Statements of Changes in Equity –Three and six months ended June 30, 2026 and 2025Condensed Consolidated Statements of Cash Flows –Three and six months ended June 30, 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 364 previous paragraphs and 393 current paragraphs.
260 unchanged; 88 reworded; 42 added; 16 removed; 0 previous and 3 current paragraphs rearranged.
Tables are not compared: 72 previous and 82 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 (42)
Current report
•Provision for credit losses increased $55 million for the three months ended June 30, 2026, primarily driven by a lower reserve release in the current year period, partially offset by a decrease in net charge-offs. Provision for credit losses decreased $101 million in the six months ended June 30, 2026, primarily driven by a decrease in net charge-offs, partially offset by a lower reserve release in the current year period.
Current report
•Retailer share arrangements increased $35 million and $210 million for the three and six months ended June 30, 2026, respectively, reflecting program performance and higher purchase volume, and other expense increased $86 million and $159 million for the three and six months ended June 30, 2026, respectively, primarily driven by higher operational losses and costs related to technology investments.
Current report
•Loan receivables increased 2.4% to $102.2 billion at June 30, 2026 compared to June 30, 2025, reflecting higher purchase volume, including the impact of the acquisition of the Lowe's commercial co-branded credit card portfolio, partially offset by the effects of higher payment rates.
Current report
•In June 2026, we issued depositary shares representing $500 million of 7.250% fixed rate reset non-cumulative perpetual preferred stock, Series C, with dividends payable quarterly beginning in August 2026.
Current report
•In April 2026, we completed the acquisition of $0.7 billion of loan receivables associated with the Lowe's commercial co-branded credit card portfolio, which are included within our Home & Auto sales platform results.
Current report
The yield on average interest-earning assets increased by one basis point and 21 basis points for the three and six months ended June 30, 2026, respectively.
Current report
The increase in yield on average interest-earning assets for the six months ended June 30, 2026 was primarily driven by an 18 basis point increase in loan receivables yield, as well as the mix of loan receivables as a percentage of interest-earning assets. The higher loan receivables yield was primarily driven by the impacts of our product, pricing and policy changes, partially offset by the impact of lower benchmark rates and lower assessed late fees.
Current report
Provision for credit losses increased by $55 million, or 4.8%, and decreased by $101 million, or 3.8%, for the three and six months ended June 30, 2026, respectively. The increase in the three months ended June 30, 2026 was primarily driven by a lower reserve release in the current year period, partially offset by lower net charge-offs. The decrease in the six months ended June 30, 2026 was primarily driven by lower net charge-offs, partially offset by a lower reserve release in the current year period.
Current report
The reserve releases for the three and six months ended June 30, 2026 were $163 million and $174 million, respectively, as compared to reserve releases of $265 million and $362 million in the respective prior year periods.
Current report
Other income increased by $19 million, or 16.1%, and $3 million, or 1.1%, for the three and six months ended June 30, 2026, respectively.
Current report
The increases for the three and six months ended June 30, 2026 were driven by higher other expense and information processing costs, reflecting increased operational losses and costs related to technology investments.
Current report
Purchase volume increased by 5.8% and 3.1% for the three and six months ended June 30, 2026, respectively, primarily reflecting the performance of new programs. Average active accounts decreased by 2.5% and 4.0% for the three and six months ended June 30, 2026, respectively.
Current report
Purchase volume increased by 9.2% and 8.7% for the three and six months ended June 30, 2026, respectively, primarily reflecting strong performance across partners with broad diversified offerings which drove both higher spend per average active account and higher average active accounts. Average active accounts increased by 1.4% and 2.0% for the three and six months ended June 30, 2026, respectively.
Current report
Other income increased by $16 million, or 24.2%, and $21 million, or 14.9%, for the three and six months ended June 30, 2026, respectively, primarily due to higher protection product revenue, lower loyalty costs and higher interchange revenue.
Current report
Other income increased by $42 million and $39 million for the three and six months ended June 30, 2026, primarily driven by a gain of $30 million related to the exchange of Visa Class B-2 common stock.
Current report
Loan receivables increased 2.4% to $102.2 billion at June 30, 2026, compared to $99.8 billion at June 30, 2025 reflecting higher purchase volume, including the impact of the acquisition of the Lowe's commercial co-branded credit card portfolio, partially offset by the effects of higher payment rates.
Current report
(2)Includes $1.0 billion of fixed securitized borrowings which matured and were repaid in July 2026.
Current report
(1)Amounts and ratios at December 31, 2025 have been recast to reflect the change in presentation of internal-use capitalized software on our Condensed Consolidated Statements of Financial Position. See Note 2. Basis of Presentation and Summary of Significant Accounting Policies to our condensed consolidated financial statements for additional information.
Current report
(1)Amounts and ratios at December 31, 2025 have been recast to reflect the change in presentation of internal-use capitalized software on our Condensed Consolidated Statements of Financial Position. See Note 2. Basis of Presentation and Summary of Significant Accounting Policies to our condensed consolidated financial statements for additional information.
Current report
On June 25, 2026, the FDIC issued two proposals that would modify certain requirements applicable to the Bank. The first would streamline resolution planning requirements for insured depository institutions by eliminating, among other things, the need for institutions to provide a strategy for their own resolution and to provide interim resolution plan supplements annually, and also by removing the FDIC’s ability to deem resolution plans, which would be renamed “resolution submissions,” not credible. The second proposal would decrease initial base deposit insurance assessment rates for institutions with total assets of $30 billion or more, including the Bank, by one basis point. This proposal would provide an additional downward adjustment of 0.5 basis points to such an institution’s assessment rate if the institution successfully completed a virtual data room testing exercise, and a further downward adjustment of 0.5 basis points if the institution provided the FDIC with temporary access to certain data service providers and/or internal data systems. We are evaluating the potential impact of these two proposals on the Company.
Current report
Change in Presentation
Current report
At June 30, 2026, we changed the presentation of costs incurred to develop or acquire internal-use capitalized software, previously included in Intangible assets, to now be presented as a component of Premises and equipment, included within Other assets on our Condensed Consolidated Statement of Financial Position to better align presentation of these costs with assets that have similar characteristics. Prior period amounts of $1.2 billion, net of accumulated amortization, have been reclassified to conform with the current period presentation. See Note 6. Other Assets for additional information.
Current report
Goodwill and Intangible Assets
Current report
We do not amortize goodwill but test it at least annually for impairment at the reporting unit level pursuant to FASB Account Standards Codification ("ASC 350"), Intangibles—Goodwill and Other. A reporting unit is defined under GAAP as the operating segment, or one level below that operating segment (the component level) if discrete financial information is prepared and regularly reviewed by segment management. Our single operating segment comprises a single reporting unit, based on the level at which segment management regularly reviews and measures the business operating results.
Current report
When a portion of a reporting unit constitutes a business that is being disposed of, the amount of goodwill to be included in the carrying amount of the business classified as held for sale is based upon the relative fair values of the business to be disposed of and the portion of the reporting unit that will be retained.
Current report
Goodwill impairment risk is first assessed by performing a qualitative review of entity-specific, industry, market and general economic factors for our reporting unit. If potential goodwill impairment risk exists that indicates that it is more likely than not that the carrying value of our reporting unit exceeds its fair value, a quantitative test is performed. The quantitative test compares the reporting unit’s estimated fair value with its carrying value, including goodwill. If the carrying value of our reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to that excess, limited to the amount of goodwill allocated to the reporting unit. The qualitative assessment for each period presented in the condensed consolidated financial statements was performed without hindsight, assuming only factors and market conditions existing as of those dates, and resulted in no potential goodwill impairment risk for our reporting unit. Consequently, goodwill was not deemed to be impaired for any of the periods presented.
Current report
Definite-lived intangible assets primarily consist of customer-related assets, including purchased credit card relationships, which are amortized over their estimated useful lives. Definite-lived intangible assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. The evaluation compares the cash inflows expected to be generated from each intangible asset to its carrying value. If cash flows attributable to the intangible asset are less than the carrying value, the asset is considered impaired and written down to its estimated fair value.
Current report
Other assets primarily consist of deferred income taxes, premises and equipment, which includes internal-use capitalized software, investments in affordable housing properties, equity method investments, and contract costs related to our retail partner agreements. Certain costs incurred to develop or acquire internal-use software are capitalized and amortized on a straight-line basis over their respective estimated useful life, generally five years, and the amortization is included as a component of Information processing costs in our Condensed Consolidated Statements of Earnings. We review these assets for impairment using the same impairment methodology used for definite-lived intangible assets. Retail partner contract costs are recognized over the life of the contract with the retail partner and are included as a component of Marketing and business development expense in our Condensed Consolidated Statements of Earnings.
Current report
(b)Primarily represents allowance for credit losses associated with a loan portfolio purchase completed in the period, previously recorded in Accrued expenses and other liabilities in our Condensed Consolidated Statements of Financial Position.
Current report
NOTE 6. OTHER ASSETS
Current report
At June 30, 2026, we changed the presentation of costs incurred to develop or acquire internal-use capitalized software, previously included in Intangible assets, to now be presented as a component of Premises and equipment, net in the table above. Amounts at December 31, 2025 have been recast to include $1.2 billion of internal-use capitalized software, net of accumulated amortization, within Premises and equipment, net to conform with the current period presentation.
Current report
The gross carrying amount for internal-use capitalized software, included in Premises and equipment, was $3.2 billion and $3.1 billion at June 30, 2026 and December 31, 2025, respectively, with accumulated amortization of $2.1 billion and $1.9 billion, respectively.
Current report
Our brokered sweep deposits are sourced through a third-party program arranger that channels deposit accounts to us. Unless extended, the related agreements are scheduled to terminate between 2026 and 2030.
Current report
(c)Includes $1.0 billion of fixed securitized borrowings which matured and were repaid in July 2026.
Current report
(c)Amounts and ratios at December 31, 2025 have been recast to reflect the change in presentation of internal-use capitalized software on our Condensed Consolidated Statements of Financial Position. See Note 2. Basis of Presentation and Summary of Significant Accounting Policies for additional information.
Current report
NOTE 12. EQUITY AND OTHER STOCK RELATED INFORMATION
Current report
At June 30, 2026 and December 31, 2025, the Company had 1.26 million and 1.25 million shares, respectively, of preferred stock outstanding, which had previously been approved by our Board for issuance. In addition, subject to approval from the Board, we have the ability to issue additional series of preferred stock up to a maximum of 300 million shares at a par value of $0.001 per share authorized for issuance. The following table summarizes the Company's preferred stock issued and outstanding at June 30, 2026 and December 31, 2025.
Current report
(a)Issued as depositary shares, each representing a 1/40th interest in a share of Series A and B non-cumulative perpetual preferred stock, and representing a 1/100th interest in a share of Series C non-cumulative perpetual preferred stock. Dividends are payable quarterly on February 15, May 15, August 15 and November 15 of each calendar year at a fixed rate, in each case when, as and if declared by the Board of Directors.
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Removed paragraphs (16)
Previous report
Trends disclosed below are compared to the three months ended March 31, 2025, as applicable, except as otherwise noted.
Previous 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.
Previous report
•These drivers were partially offset by higher retailer share arrangements of $175 million and higher other expense of $73 million.
Previous 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.
Previous 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.
Previous 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.
Previous report
Other income decreased by $16 million to $133 million, for the three months ended March 31, 2026.
Previous 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.
Previous report
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 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.
Previous report
Other income decreased by $1 million, or 1.8%, for the three months ended March 31, 2026, primarily due to higher loyalty costs.
Previous report
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 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.
Previous report
The allowance for credit losses remained flat compared to December 31, 2025, reflecting asset quality trends in line with the prior quarter.
Previous report
NOTE 6. INTANGIBLE ASSETS
Previous report
Our broker network deposit sweeps are procured through a program arranger who channels account deposits to us. Unless extended, the contracts associated with these broker network deposit sweeps will terminate between 2026 and 2029.
Reworded paragraphs (88)
Previous wording
We are a premier consumer financial services company delivering one of the industry's most complete digitally-enabled product suites. Our experience, expertise and scale encompass a broad spectrum of industries including digital, health and wellness, retail, telecommunications, home, auto, outdoor, pet and more. We have an established and diverse group of national and regional retailers, local merchants, manufacturers, buying groups, industry associations and healthcare service providers, which we refer to as our “partners.” For the three months ended March 31, 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.
Current wording
We are a premier consumer financial services company delivering one of the industry's most complete digitally-enabled product suites. Our experience, expertise and scale encompass a broad spectrum of industries including digital, health and wellness, retail, telecommunications, home, auto, outdoor, pet and more. We have an established and diverse group of national and regional retailers, local merchants, manufacturers, buying groups, industry associations and healthcare service providers, which we refer to as our “partners.” For the three and six months ended June 30, 2026, we financed $49.8 billion and $92.8 billion of purchase volume, respectively, and had 68.3 million and 68.7 million average active accounts, respectively, and at June 30, 2026, we had $102.2 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 March 31, 2026, we had $82.9 billion in deposits, which represented 83% of our total funding sources.
Current wording
We offer our credit products primarily through our wholly-owned subsidiary, the Bank. In addition, through the Bank, we offer, directly to retail, affinity relationships and commercial customers, a range of deposit products insured by the Federal Deposit Insurance Corporation (“FDIC”), including certificates of deposit, individual retirement accounts (“IRAs”), money market accounts, savings accounts and sweep and affinity deposits. We also take deposits at the Bank through third-party firms that offer our FDIC-insured deposit products to their customers. Our deposit base has continued to serve as a source of stable and diversified low-cost funding for our credit activities. At June 30, 2026, we had $82.8 billion in deposits, which represented 83% of our total funding sources.
Previous wording
We offer the following principal types of credit cards:
Current wording
We offer the following principal types of consumer credit cards:
Previous 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.
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 consumer 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 June 30, 2026.
Previous wording
We offer private label cards and Dual Cards for commercial customers that are similar to our consumer offerings. We also offer a commercial pay-in-full accounts receivable product to a wide range of business customers.
Current wording
We offer private label cards and Dual Cards for commercial customers that are similar to our consumer offerings, and includes the Lowe's commercial co-branded credit card portfolio acquired in April 2026. We also offer a commercial pay-in-full accounts receivable product to a wide range of business customers.
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 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.”
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 and six months ended June 30, 2026, see “—Results of Operations.”
Previous wording
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 wording
Delinquency rates and delinquent loan receivables balances typically rise in the third and fourth quarters as customer payment rates typically 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.
Previous wording
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 wording
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.
Previous wording
Summary Highlights for the Three Months Ended March 31, 2026
Current wording
Summary Highlights for the Three and Six Months Ended June 30, 2026
Previous wording
Net earnings increased to $805 million from $757 million for the three months ended March 31, 2026, primarily reflecting the following key drivers:
Current wording
Net earnings decreased to $885 million from $967 million and was flat at $1.7 billion for the three and six months ended June 30, 2026, respectively, primarily reflecting the following key drivers:
Previous wording
•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 wording
•Increases in net interest income of $87 million and $258 million for the three and six months ended June 30, 2026, respectively, primarily driven by decreases in interest expense and increases in interest and fees on loans, partially offset by lower interest income from our liquidity portfolio.
Previous 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.
Current wording
•Over-30 day loan delinquencies as a percentage of period-end loan receivables decreased 2 basis points to 4.16% at June 30, 2026 from 4.18% at June 30, 2025. The net charge-off rate decreased 27 basis points and 61 basis points for the three and six months ended June 30, 2026, respectively, to 5.43% for both periods.
Previous 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.
Current wording
•Our allowance coverage ratio (allowance for credit losses as a percentage of period-end loan receivables) decreased to 10.09% at June 30, 2026, as compared to 10.59% at June 30, 2025.
Previous 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.
Current wording
•At June 30, 2026, deposits represented 83% of our total funding sources. Total deposits increased by 2.0% to $82.8 billion at June 30, 2026, compared to December 31, 2025.
Previous 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.
Current wording
•During the six months ended June 30, 2026, we repurchased $1.8 billion of our outstanding common stock, and declared and paid cash dividends of $0.60 per share, or $204 million in the aggregate.
Previous wording
•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 wording
•At June 30, 2026, we had a total remaining share repurchase authorization of $5.7 billion under the program that was announced in April 2026 and does not have an expiration date. In addition, the Company announced that the Board approved an increase of our quarterly dividend to $0.34 per common share commencing in the third quarter of 2026.
Previous 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:
Current wording
During the six months ended June 30 2026, and to date, we continued to expand and diversify our portfolio with the addition or renewal of more than 30 partners, which included the following:
Previous wording
•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 wording
•In our Health & Wellness sales platform, we also 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.
Previous 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:
Current 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:
Previous wording
(2)Includes average restricted cash balances of $60 million and $690 million for the three months ended March 31, 2026 and 2025, respectively.
Current wording
(2)Includes average restricted cash balances of $691 million and $642 million for the three months ended June 30, 2026 and 2025, respectively, and $377 million and $666 million for the six months ended June 30, 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 $559 million and $588 million for the three months ended March 31, 2026 and 2025, respectively.
Current wording
(3)Interest income on loan receivables includes fees on loans, which primarily consist of late fees on our credit products, of $508 million and $560 million for the three months ended June 30, 2026 and 2025, respectively, and $1.1 billion for both of the six months ended June 30, 2026 and 2025.
Previous 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.
Current wording
Interest income was flat for the three months ended June 30, 2026 reflecting an increase of 1.0% in interest and fees on loans offset by lower interest income from our liquidity portfolio. Interest income increased $50 million, or 0.4%, for the six months ended June 30, 2026 reflecting an increase of 1.4% in interest and fees on loans, partially offset by lower interest income from our liquidity portfolio. The increases in interest and fees on loans for the three and six months ended June 30, 2026 were primarily driven by growth in average loan receivables, as well as the impact of our product, pricing and policy changes for the six months ended June 30, 2026.
Previous wording
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 wording
Average loan receivables, including held for sale, increased 1.5% and 0.6% for the three and six months ended June 30, 2026, respectively, reflecting higher purchase volume, partially offset by the effects of higher payment rates. Purchase volume increased by 8.1% and 6.9% for the three and six months ended June 30, 2026, respectively, primarily reflecting the impacts of partner expansion and higher spend per average active account.
Previous 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.
Current wording
The change in yield for the three months ended June 30, 2026 reflects the impact of the mix of loan receivables as a percentage of interest-earning assets versus the prior year, partially offset by decreases in the yield on both loan receivables and our liquidity portfolio. The loan receivables yield decreased 11 basis points to 21.43% for the three months ended June 30, 2026 primarily driven by lower benchmark rates and lower assessed late fees, partially offset by the impacts of our product, pricing and policy changes.
Previous 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.
Current wording
Interest expense decreased by $90 million, or 8.5%, and $208 million, or 9.7%, for the three and six months ended June 30, 2026, respectively, primarily due to lower interest-bearing liabilities cost associated with lower benchmark rates. Our cost of funds decreased to 3.96% and 4.00% for the three and six months ended June 30, 2026, respectively, compared to 4.35% and 4.41% for the respective prior year periods.
Previous 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.
Current wording
Net interest income increased by $87 million, or 1.9%, and $258 million, or 2.9%, for the three and six months ended June 30, 2026, respectively, resulting from the changes in interest income and interest expense discussed above.
Previous 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.
Current wording
Retailer share arrangements increased by $35 million, or 3.5%, and $210 million, or 11.1%, for the three and six months ended June 30, 2026, respectively, reflecting program performance, which included lower net charge-offs, and the impact of our product, pricing and policy changes, as well as higher purchase volume.
Previous 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%.
Current wording
Net charge-offs for the three and six months ended June 30, 2026 decreased by $47 million and $289 million, respectively. The net charge-off rate decreased by 27 basis points and 61 basis points for the three and six months ended June 30, 2026, respectively, to 5.43% for both periods, 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
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 wording
The increases in the three and six months ended June 30, 2026 were primarily driven by increases in other income, interchange revenue, and protection product revenue. These increases were partially offset by higher loyalty costs. During the three months ended June 30, 2026, we participated in the Visa exchange offer, which included the exchange of Visa Class B-2 common stock for Visa Class C common stock, which was recorded at fair value. The increases in other income for the three and six months ended June 30, 2026 were driven primarily by a gain of $30 million related to the exchange of Visa Class B-2 common stock.
Previous wording
Other expense increased by $73 million, or 5.9%, for the three months ended March 31, 2026.
Current wording
Other expense increased by $86 million, or 6.9%, and $159 million, or 6.4%, for the three and six months ended June 30, 2026, respectively.
Previous 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.
Current wording
The effective tax rate for the three and six months ended June 30, 2026 increased compared to the same periods in the prior year primarily due to tax benefits recognized in the prior year related to the remeasurement of deferred tax assets 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.
Previous wording
As discussed above under “—Our Sales Platforms,” we offer our credit products primarily through five sales platforms (Home & Auto, Digital, Diversified & Value, Health & Wellness and Lifestyle). The following is a discussion of certain supplemental information for the three months ended March 31, 2026, for each of our five sales platforms and Corp, Other.
Current wording
As discussed above under “—Our Sales Platforms,” we offer our credit products primarily through five sales platforms (Home & Auto, Digital, Diversified & Value, Health & Wellness and Lifestyle). The following is a discussion of certain supplemental information for the three and six months ended June 30, 2026, for each of our five sales platforms and Corp, Other.
Previous 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.
Current wording
Home & Auto interest and fees on loans remained flat for the three months ended June 30, 2026 and decreased by $24 million, or 0.9%, for the six months ended June 30, 2026, reflecting lower average loan receivables, offset by higher loan receivables yield. The decrease in average loan receivables was primarily driven by higher payment rates, partially offset by the impact of the acquisition of the Lowe's commercial co-branded credit card portfolio. The increase in loan receivables yield reflects the impact of product, pricing and policy changes, partially offset by lower late fee incidence.
Previous 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.
Current wording
Other income increased by $11 million, or 21.2%, and $10 million, or 9.3%, for the three and six months ended June 30, 2026, respectively, primarily due to higher protection product revenue and higher interchange revenue, partially offset by higher loyalty costs.
Previous wording
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 wording
Digital interest and fees on loans increased by $28 million, or 1.8%, and $116 million, or 3.7% for the three and six months ended June 30, 2026, respectively, primarily driven by higher average loan receivables, partially offset by lower benchmark rates.
Previous 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.
Current wording
Diversified & Value interest and fees on loans increased by $18 million, or 1.6%, and $35 million, or 1.5%, for the three and six months ended June 30, 2026, respectively, primarily driven by higher average loan receivables reflecting the impact of partner expansion, partially offset by decreases in loan receivables yield primarily reflecting lower benchmark rates and lower late fee incidence.
Previous wording
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 wording
Purchase volume increased 11.7% and 10.3%, for the three and six months ended June 30, 2026, respectively, primarily reflecting the impact of partner expansion, as well as higher gas sales. Average active accounts increased by 3.5% and 2.4% for the three and six months ended June 30, 2026, respectively.
Previous wording
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 wording
Other income decreased by $48 million and $66 million, for the three and six months ended June 30, 2026, respectively, primarily due to higher loyalty costs, partially offset by higher interchange revenue.
Previous 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.
Current wording
Health & Wellness interest and fees on loans increased by $25 million, or 2.7%, and $59 million, or 3.2%, for the three and six months ended June 30, 2026, respectively, primarily driven by increases in loan receivables yield, reflecting the impact of product, pricing and policy changes.
Previous 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.
Current wording
Purchase volume increased 2.1% and 2.3% for the three and six months ended June 30, 2026, respectively, reflecting growth in Pet, partially offset by lower spend in Cosmetic. The increase in the six months ended June 30, 2026 also reflected growth in Audiology. In addition, higher spend per average active account exceeded the impact of lower average active accounts. Average active accounts decreased 1.5% and 1.4% for the three and six months ended June 30, 2026, respectively.
Showing the first 40 of 88 pairs. Open the source sections for the rest.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
(1)Excludes $417 million and $415 million average balance of non-interest-bearing deposits for the six months ended June 30, 2026 and 2025, respectively. Non-interest-bearing deposits comprise less than 10% of total deposits for the six months ended June 30, 2026 and 2025.
Current report — wording carried from elsewhere
(2)Tier 1 leverage ratio represents total Tier 1 capital as a percentage of total average assets, after certain adjustments. All other ratios presented above represent the applicable capital measure as a percentage of risk-weighted assets.
Current report — wording carried from elsewhere
The table below excludes 0.4%,0.4% and 0.3% of our total loan receivables balance for our credit cards and commercial credit products at June 30, 2026, December 31, 2025 and June 30, 2025, respectively, which represents those customer accounts for which a VantageScore credit score, or equivalent, is not available.