SYF 8-K

Synchrony Financial (SYF)

8-K 2021-01-29 For: 2021-01-29

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Added on July 04, 2026

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777 Long Ridge Road
Stamford,	Connecticut	06902
(Address of principal executive offices)		(Zip Code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, par value $0.001 per share	SYF	New York Stock Exchange
Depositary Shares Each Representing a 1/40th Interest in a Share of 5.625% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A	SYFPrA	New York Stock Exchange



Number						Description

99.1						Press release, dated January 29, 2021, issued by Synchrony Financial
99.2						Financial Data Supplement of the Company for the quarter ended December 31, 2020
99.3						Financial Results Presentation of the Company for the quarter ended December 31, 2020
99.4						Explanation of Non-GAAP Measures
104						The cover page from this Current Report on Form 8-K, formatted in Inline XBRL



Number						Description

99.1						Press release, dated January 29, 2021, issued by Synchrony Financial
99.2						Financial Data Supplement of the Company for the quarter ended December 31, 20 20
99.3						Financial Results Presentation of the Company for the quarter ended December 31, 20 20
99.4						Explanation of Explanation of Non-GAAP Measures Measures
104						The cover page from this Current Report on Form 8-K, formatted in Inline XBRL


SYNCHRONY FINANCIAL
FINANCIAL SUMMARY
(unaudited, in millions, except per share statistics)
	Quarter Ended														Twelve Months Ended
	Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Mar 31, 2020		Dec 31, 2019		4Q'20 vs. 4Q'19				Dec 31, 2020		Dec 31, 2019		YTD'20 vs. YTD'19
EARNINGS
Net interest income	$	3,659	$	3,457	$	3,396	$	3,890	$	4,029	$	(370)	(9.2)	%	$	14,402	$	16,799	$	(2,397)	(14.3)	%
Retailer share arrangements	(1,047)		(899)		(773)		(926)		(1,029)		(18)		1.7	%	(3,645)		(3,858)		213		(5.5)	%

Provision for credit losses	750		1,210		1,673		1,677		1,104		(354)		(32.1)	%	5,310		4,180		1,130		27.0	%
Net interest income, after retailer share arrangements and provision for credit losses	1,862		1,348		950		1,287		1,896		(34)		(1.8)	%	5,447		8,761		(3,314)		(37.8)	%
Other income	82		131		95		97		104		(22)		(21.2)	%	405		371		34		9.2	%
Other expense	1,000		1,067		986		1,002		1,079		(79)		(7.3)	%	4,055		4,245		(190)		(4.5)	%
Earnings before provision for income taxes	944		412		59		382		921		23		2.5	%	1,797		4,887		(3,090)		(63.2)	%
Provision for income taxes	206		99		11		96		190		16		8.4	%	412		1,140		(728)		(63.9)	%
Net earnings	$	738	$	313	$	48	$	286	$	731	$	7	1.0	%	$	1,385	$	3,747	$	(2,362)	(63.0)	%
Net earnings available to common stockholders	$	728	$	303	$	37	$	275	$	731	$	(3)	(0.4)	%	$	1,343	$	3,747	$	(2,404)	(64.2)	%



COMMON SHARE STATISTICS
Basic EPS	$	1.25	$	0.52	$	0.06	$	0.45	$	1.15	$	0.10	8.7	%	$	2.28	$	5.59	$	(3.31)	(59.2)	%
Diluted EPS	$	1.24	$	0.52	$	0.06	$	0.45	$	1.15	$	0.09	7.8	%	$	2.27	$	5.56	$	(3.29)	(59.2)	%

Dividend declared per share	$	0.22	$	0.22	$	0.22	$	0.22	$	0.22	$	—	—	%	$	0.88	$	0.86	$	0.02	2.3	%
Common stock price	$	34.71	$	26.17	$	22.16	$	16.09	$	36.01	$	(1.30)	(3.6)	%	$	34.71	$	36.01	$	(1.30)	(3.6)	%
Book value per share	$	20.49	$	19.47	$	19.13	$	19.27	$	23.31	$	(2.82)	(12.1)	%	$	20.49	$	23.31	$	(2.82)	(12.1)	%
Tangible common equity per share(1)	$	16.72	$	15.75	$	15.28	$	15.35	$	19.50	$	(2.78)	(14.3)	%	$	16.72	$	19.50	$	(2.78)	(14.3)	%

Beginning common shares outstanding	583.8		583.7		583.2		615.9		653.7		(69.9)		(10.7)	%	615.9		718.8		(102.9)		(14.3)	%
Issuance of common shares	—		—		—		—		—		—		—	%	—		—		—		—	%
Stock-based compensation	0.2		0.1		0.5		0.9		0.6		(0.4)		(66.7)	%	1.7		3.1		(1.4)		(45.2)	%
Shares repurchased	—		—		—		(33.6)		(38.4)		38.4		(100.0)	%	(33.6)		(106.0)		72.4		(68.3)	%
Ending common shares outstanding	584.0		583.8		583.7		583.2		615.9		(31.9)		(5.2)	%	584.0		615.9		(31.9)		(5.2)	%

Weighted average common shares outstanding	583.9		583.8		583.7		604.9		633.7		(49.8)		(7.9)	%	589.0		670.2		(81.2)		(12.1)	%
Weighted average common shares outstanding (fully diluted)	586.6		584.8		584.4		607.4		637.7		(51.1)		(8.0)	%	590.8		673.5		(82.7)		(12.3)	%

(1) Tangible Common Equity ("TCE") is a non-GAAP measure. For corresponding reconciliation of TCE to a GAAP financial measure, see Reconciliation of Non-GAAP Measures and Calculations of Regulatory Measures.


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)


☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)


☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))


SYNCHRONY FINANCIAL
SELECTED METRICS
(unaudited, $ in millions)
	Quarter Ended																			Twelve Months Ended
	Dec 31, 2020			Sep 30, 2020			Jun 30, 2020			Mar 31, 2020			Dec 31, 2019			4Q'20 vs. 4Q'19				Dec 31, 2020			Dec 31, 2019			YTD'20 vs. YTD'19
PERFORMANCE METRICS
Return on assets(1)	3.1		%	1.3		%	0.2		%	1.1		%	2.7		%			0.4	%	1.4		%	3.5		%			(2.1)	%
Return on equity(2)	23.6		%	10.3		%	1.6		%	9.1		%	19.0		%			4.6	%	11.2		%	25.1		%			(13.9)	%
Return on tangible common equity(3)	30.4		%	13.1		%	1.6		%	11.6		%	23.0		%			7.4	%	14.4		%	29.9		%			(15.5)	%



Net interest margin(4)	14.64		%	13.80		%	13.53		%	15.15		%	15.01		%			(0.37)	%	14.29		%	15.78		%			(1.49)	%
Efficiency ratio(5)	37.1		%	39.7		%	36.3		%	32.7		%	34.8		%			2.3	%	36.3		%	31.9		%			4.4	%
Other expense as a % of average loan receivables, including held for sale	5.01		%	5.44		%	5.04		%	4.77		%	5.01		%			0.00	%	5.06		%	4.79		%			0.27	%
Effective income tax rate	21.8		%	24.0		%	18.6		%	25.1		%	20.6		%			1.2	%	22.9		%	23.3		%			(0.4)	%


CREDIT QUALITY METRICS
Net charge-offs as a % of average loan receivables, including held for sale	3.16		%	4.42		%	5.35		%	5.36		%	5.15		%			(1.99)	%	4.58		%	5.65		%			(1.07)	%
30+ days past due as a % of period-end loan receivables(6)	3.07		%	2.67		%	3.13		%	4.24		%	4.44		%			(1.37)	%	3.07		%	4.44		%			(1.37)	%
90+ days past due as a % of period-end loan receivables(6)	1.40		%	1.24		%	1.77		%	2.10		%	2.15		%			(0.75)	%	1.40		%	2.15		%			(0.75)	%
Net charge-offs	$	631		$	866		$	1,046		$	1,125		$	1,109		$	(478)	(43.1)	%	$	3,668		$	5,005		$	(1,337)	(26.7)	%
Loan receivables delinquent over 30 days(6)	$	2,514		$	2,100		$	2,453		$	3,500		$	3,874		$	(1,360)	(35.1)	%	$	2,514		$	3,874		$	(1,360)	(35.1)	%
Loan receivables delinquent over 90 days(6)	$	1,143		$	973		$	1,384		$	1,735		$	1,877		$	(734)	(39.1)	%	$	1,143		$	1,877		$	(734)	(39.1)	%

Allowance for credit losses (period-end)	$	10,265		$	10,146		$	9,802		$	9,175		$	5,602		$	4,663	83.2	%	$	10,265		$	5,602		$	4,663	83.2	%
Allowance coverage ratio(7)	12.54		%	12.92		%	12.52		%	11.13		%	6.42		%			6.12	%	12.54		%	6.42		%			6.12	%

BUSINESS METRICS
Purchase volume(8)(9)	$	39,874		$	36,013		$	31,155		$	32,042		$	40,212		$	(338)	(0.8)	%	$	139,084		$	149,411		$	(10,327)	(6.9)	%
Period-end loan receivables	$	81,867		$	78,521		$	78,313		$	82,469		$	87,215		$	(5,348)	(6.1)	%	$	81,867		$	87,215		$	(5,348)	(6.1)	%
Credit cards	$	78,455		$	75,204		$	75,353		$	79,832		$	84,606		$	(6,151)	(7.3)	%	$	78,455		$	84,606		$	(6,151)	(7.3)	%
Consumer installment loans	$	2,125		$	1,987		$	1,779		$	1,390		$	1,347		$	778	57.8	%	$	2,125		$	1,347		$	778	57.8	%
Commercial credit products	$	1,250		$	1,270		$	1,140		$	1,203		$	1,223		$	27	2.2	%	$	1,250		$	1,223		$	27	2.2	%
Other	$	37		$	60		$	41		$	44		$	39		$	(2)	(5.1)	%	$	37		$	39		$	(2)	(5.1)	%
Average loan receivables, including held for sale	$	79,452		$	78,005		$	78,697		$	84,428		$	85,376		$	(5,924)	(6.9)	%	$	80,138		$	88,649		$	(8,511)	(9.6)	%
Period-end active accounts (in thousands)(9)(10)	68,540			64,800			63,430			68,849			75,471			(6,931)		(9.2)	%	68,540			75,471			(6,931)		(9.2)	%
Average active accounts (in thousands)(9)(10)	66,261			64,270			64,836			72,078			73,734			(7,473)		(10.1)	%	67,131			75,721			(8,590)		(11.3)	%

LIQUIDITY
Liquid assets
Cash and equivalents	$	11,524		$	13,552		$	16,344		$	13,704		$	12,147		$	(623)	(5.1)	%	$	11,524		$	12,147		$	(623)	(5.1)	%
Total liquid assets	$	18,321		$	21,402		$	22,352		$	19,225		$	17,322		$	999	5.8	%	$	18,321		$	17,322		$	999	5.8	%
Undrawn credit facilities
Undrawn credit facilities	$	5,400		$	5,400		$	5,650		$	5,600		$	6,050		$	(650)	(10.7)	%	$	5,400		$	6,050		$	(650)	(10.7)	%
Total liquid assets and undrawn credit facilities	$	23,721		$	26,802		$	28,002		$	24,825		$	23,372		$	349	1.5	%	$	23,721		$	23,372		$	349	1.5	%
Liquid assets % of total assets	19.09		%	22.37		%	23.15		%	19.61		%	16.52		%			2.57	%	19.09		%	16.52		%			2.57	%
Liquid assets including undrawn credit facilities % of total assets	24.72		%	28.02		%	29.00		%	25.32		%	22.30		%			2.42	%	24.72		%	22.30		%			2.42	%


(1) Return on assets represents net earnings as a percentage of average total assets.
(2) Return on equity represents net earnings as a percentage of average total equity.
(3) Return on tangible common equity represents net earnings available to common stockholders as a percentage of average tangible common equity. Tangible common equity ("TCE") is a non-GAAP measure. For corresponding reconciliation of TCE to a GAAP financial measure, see Reconciliation of Non-GAAP Measures and Calculations of Regulatory Measures.
(4) Net interest margin represents net interest income divided by average interest-earning assets.
(5) Efficiency ratio represents (i) other expense, divided by (ii) net interest income, plus other income, less retailer share arrangements.
(6) Based on customer statement-end balances extrapolated to the respective period-end date.
(7) Allowance coverage ratio represents allowance for credit losses divided by total period-end loan receivables.
(8) Purchase volume, or net credit sales, represents the aggregate amount of charges incurred on credit cards or other credit product accounts less returns during the period.
(9) Includes activity and accounts associated with loan receivables held for sale.
(10) Active accounts represent credit card or installment loan accounts on which there has been a purchase, payment or outstanding balance in the current month.


SYNCHRONY FINANCIAL
STATEMENTS OF EARNINGS
(unaudited, $ in millions)
	Quarter Ended														Twelve Months Ended
	Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Mar 31, 2020		Dec 31, 2019		4Q'20 vs. 4Q'19				Dec 31, 2020		Dec 31, 2019		YTD'20 vs. YTD'19
Interest income:
Interest and fees on loans	$	3,981	$	3,821	$	3,808	$	4,340	$	4,492	$	(511)	(11.4)	%	$	15,950	$	18,705	$	(2,755)	(14.7)	%
Interest on cash and debt securities	12		16		22		67		93		(81)		(87.1)	%	117		385		(268)		(69.6)	%
Total interest income	3,993		3,837		3,830		4,407		4,585		(592)		(12.9)	%	16,067		19,090		(3,023)		(15.8)	%

Interest expense:
Interest on deposits	200		245		293		356		383		(183)		(47.8)	%	1,094		1,566		(472)		(30.1)	%
Interest on borrowings of consolidated securitization entities	52		53		59		73		80		(28)		(35.0)	%	237		358		(121)		(33.8)	%
Interest on senior unsecured notes	82		82		82		88		93		(11)		(11.8)	%	334		367		(33)		(9.0)	%

Total interest expense	334		380		434		517		556		(222)		(39.9)	%	1,665		2,291		(626)		(27.3)	%

Net interest income	3,659		3,457		3,396		3,890		4,029		(370)		(9.2)	%	14,402		16,799		(2,397)		(14.3)	%

Retailer share arrangements	(1,047)		(899)		(773)		(926)		(1,029)		(18)		1.7	%	(3,645)		(3,858)		213		(5.5)	%


Provision for credit losses	750		1,210		1,673		1,677		1,104		(354)		(32.1)	%	5,310		4,180		1,130		27.0	%
Net interest income, after retailer share arrangements and provision for credit losses	1,862		1,348		950		1,287		1,896		(34)		(1.8)	%	5,447		8,761		(3,314)		(37.8)	%

Other income:
Interchange revenue	185		172		134		161		192		(7)		(3.6)	%	652		748		(96)		(12.8)	%
Debt cancellation fees	72		68		69		69		64		8		12.5	%	278		265		13		4.9	%
Loyalty programs	(202)		(155)		(134)		(158)		(181)		(21)		11.6	%	(649)		(743)		94		(12.7)	%
Other	27		46		26		25		29		(2)		(6.9)	%	124		101		23		22.8	%
Total other income	82		131		95		97		104		(22)		(21.2)	%	405		371		34		9.2	%

Other expense:
Employee costs	347		382		327		324		385		(38)		(9.9)	%	1,380		1,455		(75)		(5.2)	%
Professional fees	186		187		189		197		199		(13)		(6.5)	%	759		867		(108)		(12.5)	%
Marketing and business development	139		107		91		111		152		(13)		(8.6)	%	448		549		(101)		(18.4)	%
Information processing	128		125		116		123		122		6		4.9	%	492		485		7		1.4	%
Other	200		266		263		247		221		(21)		(9.5)	%	976		889		87		9.8	%
Total other expense	1,000		1,067		986		1,002		1,079		(79)		(7.3)	%	4,055		4,245		(190)		(4.5)	%

Earnings before provision for income taxes	944		412		59		382		921		23		2.5	%	1,797		4,887		(3,090)		(63.2)	%
Provision for income taxes	206		99		11		96		190		16		8.4	%	412		1,140		(728)		(63.9)	%
Net earnings	$	738	$	313	$	48	$	286	$	731	$	7	1.0	%	$	1,385	$	3,747	$	(2,362)	(63.0)	%

Net earnings available to common stockholders	$	728	$	303	$	37	$	275	$	731	$	(3)	(0.4)	%	$	1,343	$	3,747	$	(2,404)	(64.2)	%


SYNCHRONY FINANCIAL
STATEMENTS OF FINANCIAL POSITION
(unaudited, $ in millions)
	Quarter Ended
	Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Mar 31, 2020		Dec 31, 2019		Dec 31, 2020 vs. Dec 31, 2019
Assets
Cash and equivalents	$	11,524	$	13,552	$	16,344	$	13,704	$	12,147	$	(623)	(5.1)	%
Debt securities	7,469		8,432		6,623		6,146		5,911		1,558		26.4	%
Loan receivables:
Unsecuritized loans held for investment	56,472		52,613		52,629		54,765		58,398		(1,926)		(3.3)	%
Restricted loans of consolidated securitization entities	25,395		25,908		25,684		27,704		28,817		(3,422)		(11.9)	%
Total loan receivables	81,867		78,521		78,313		82,469		87,215		(5,348)		(6.1)	%
Less: Allowance for credit losses(1)	(10,265)		(10,146)		(9,802)		(9,175)		(5,602)		(4,663)		83.2	%
Loan receivables, net	71,602		68,375		68,511		73,294		81,613		(10,011)		(12.3)	%
Loan receivables held for sale	5		4		4		5		725		(720)		(99.3)	%
Goodwill	1,078		1,078		1,078		1,078		1,078		—		—	%
Intangible assets, net	1,125		1,091		1,166		1,208		1,265		(140)		(11.1)	%
Other assets	3,145		3,126		2,818		2,603		2,087		1,058		50.7	%
Total assets	$	95,948	$	95,658	$	96,544	$	98,038	$	104,826	$	(8,878)	(8.5)	%

Liabilities and Equity
Deposits:
Interest-bearing deposit accounts	$	62,469	$	63,195	$	63,857	$	64,302	$	64,877	$	(2,408)	(3.7)	%
Non-interest-bearing deposit accounts	313		298		291		313		277		36		13.0	%
Total deposits	62,782		63,493		64,148		64,615		65,154		(2,372)		(3.6)	%
Borrowings:
Borrowings of consolidated securitization entities	7,810		7,809		8,109		9,291		10,412		(2,602)		(25.0)	%

Senior unsecured notes	7,965		7,962		7,960		7,957		9,454		(1,489)		(15.7)	%

Total borrowings	15,775		15,771		16,069		17,248		19,866		(4,091)		(20.6)	%
Accrued expenses and other liabilities	4,690		4,295		4,428		4,205		4,718		(28)		(0.6)	%
Total liabilities	83,247		83,559		84,645		86,068		89,738		(6,491)		(7.2)	%
Equity:
Preferred stock	734		734		734		734		734		—		—	%
Common stock	1		1		1		1		1		—		—	%
Additional paid-in capital	9,570		9,552		9,532		9,523		9,537		33		0.3	%
Retained earnings	10,621		10,024		9,852		9,960		12,117		(1,496)		(12.3)	%
Accumulated other comprehensive income (loss)	(51)		(31)		(37)		(49)		(58)		7		(12.1)	%
Treasury stock	(8,174)		(8,181)		(8,183)		(8,199)		(7,243)		(931)		12.9	%
Total equity	12,701		12,099		11,899		11,970		15,088		(2,387)		(15.8)	%
Total liabilities and equity	$	95,948	$	95,658	$	96,544	$	98,038	$	104,826	$	(8,878)	(8.5)	%

(1) Effective January 1, 2020, the Company adopted ASU 2016-13, Financial Instruments-Credit Losses ("CECL") that measures the allowance for credit losses based on management’s best estimate of expected credit losses for the life of our loan receivables. Prior periods presented reflect measurement of the allowance based on management’s estimate of probable incurred credit losses in accordance with the previous accounting guidance effective for those periods.


SYNCHRONY FINANCIAL
AVERAGE BALANCES, NET INTEREST INCOME AND NET INTEREST MARGIN
(unaudited, $ in millions)

	Quarter Ended
	Dec 31, 2020						Sep 30, 2020						Jun 30, 2020						Mar 31, 2020						Dec 31, 2019
			Interest		Average				Interest		Average				Interest		Average				Interest		Average				Interest		Average
	Average		Income/		Yield/		Average		Income/		Yield/		Average		Income/		Yield/		Average		Income/		Yield/		Average		Income/		Yield/
	Balance		Expense		Rate		Balance		Expense		Rate		Balance		Expense		Rate		Balance		Expense		Rate		Balance		Expense		Rate
Assets
Interest-earning assets:
Interest-earning cash and equivalents	$	11,244	$	4	0.14	%	$	13,664	$	4	0.12	%	$	15,413	$	3	0.08	%	$	12,902	$	42	1.31	%	$	16,269	$	68	1.66	%
Securities available for sale	8,706		8		0.37	%	7,984		12		0.60	%	6,804		19		1.12	%	5,954		25		1.69	%	4,828		25		2.05	%

Loan receivables, including held for sale:
Credit cards	76,039		3,908		20.45	%	74,798		3,752		19.96	%	75,942		3,740		19.81	%	81,716		4,272		21.03	%	81,960		4,409		21.34	%
Consumer installment loans	2,057		50		9.67	%	1,892		46		9.67	%	1,546		37		9.63	%	1,432		35		9.83	%	2,058		48		9.25	%
Commercial credit products	1,293		23		7.08	%	1,238		22		7.07	%	1,150		30		10.49	%	1,243		33		10.68	%	1,311		34		10.29	%
Other	63		—		—	%	77		1		NM		59		1		NM		37		—		—	%	47		1		NM
Total loan receivables, including held for sale	79,452		3,981		19.93	%	78,005		3,821		19.49	%	78,697		3,808		19.46	%	84,428		4,340		20.67	%	85,376		4,492		20.87	%
Total interest-earning assets	99,402		3,993		15.98	%	99,653		3,837		15.32	%	100,914		3,830		15.26	%	103,284		4,407		17.16	%	106,473		4,585		17.08	%

Non-interest-earning assets:
Cash and due from banks	1,525						1,489						1,486						1,450						1,326
Allowance for credit losses	(10,190)						(9,823)						(9,221)						(8,708)						(5,593)
Other assets	5,228						5,021						4,779						4,696						3,872
Total non-interest-earning assets	(3,437)						(3,313)						(2,956)						(2,562)						(395)

Total assets	$	95,965					$	96,340					$	97,958					$	100,722					$	106,078

Liabilities
Interest-bearing liabilities:
Interest-bearing deposit accounts	$	62,800	$	200	1.27	%	$	63,569	$	245	1.53	%	$	64,298	$	293	1.83	%	$	64,366	$	356	2.22	%	$	65,380	$	383	2.32	%
Borrowings of consolidated securitization entities	7,809		52		2.65	%	8,057		53		2.62	%	8,863		59		2.68	%	9,986		73		2.94	%	10,831		80		2.93	%

Senior unsecured notes	7,963		82		4.10	%	7,960		82		4.10	%	7,958		82		4.14	%	8,807		88		4.02	%	9,452		93		3.90	%

Total interest-bearing liabilities	78,572		334		1.69	%	79,586		380		1.90	%	81,119		434		2.15	%	83,159		517		2.50	%	85,663		556		2.58	%

Non-interest-bearing liabilities
Non-interest-bearing deposit accounts	308						307						309						299						281
Other liabilities	4,663						4,308						4,349						4,672						4,906
Total non-interest-bearing liabilities	4,971						4,615						4,658						4,971						5,187

Total liabilities	83,543						84,201						85,777						88,130						90,850

Equity
Total equity	12,422						12,139						12,181						12,592						15,228

Total liabilities and equity	$	95,965					$	96,340					$	97,958					$	100,722					$	106,078
Net interest income			$	3,659					$	3,457					$	3,396					$	3,890					$	4,029

Interest rate spread(1)					14.29	%					13.42	%					13.11	%					14.66	%					14.50	%
Net interest margin(2)					14.64	%					13.80	%					13.53	%					15.15	%					15.01	%



(1) Interest rate spread represents the difference between the yield on total interest-earning assets and the rate on total interest-bearing liabilities.
(2) Net interest margin represents net interest income divided by average interest-earning assets.


SYNCHRONY FINANCIAL
BALANCE SHEET STATISTICS
(unaudited, $ in millions, except per share statistics)

	Quarter Ended
	Dec 31, 2020			Sep 30, 2020			Jun 30, 2020			Mar 31, 2020			Dec 31, 2019			Dec 31, 2020 vs. Dec 31, 2019
BALANCE SHEET STATISTICS
Total common equity	$	11,967		$	11,365		$	11,165		$	11,236		$	14,354		$	(2,387)	(16.6)	%
Total common equity as a % of total assets	12.47		%	11.88		%	11.56		%	11.46		%	13.69		%			(1.22)	%

Tangible assets	$	93,745		$	93,489		$	94,300		$	95,752		$	102,483		$	(8,738)	(8.5)	%
Tangible common equity(1)	$	9,764		$	9,196		$	8,921		$	8,950		$	12,011		$	(2,247)	(18.7)	%
Tangible common equity as a % of tangible assets(1)	10.42		%	9.84		%	9.46		%	9.35		%	11.72		%			(1.30)	%
Tangible common equity per share(1)	$	16.72		$	15.75		$	15.28		$	15.35		$	19.50		$	(2.78)	(14.3)	%

REGULATORY CAPITAL RATIOS(2)(3)
	Basel III - CECL Transition												Basel III
Total risk-based capital ratio(4)	18.1		%	18.1		%	17.6		%	16.5		%	16.3		%
Tier 1 risk-based capital ratio(5)	16.8		%	16.7		%	16.3		%	15.2		%	15.0		%

Tier 1 leverage ratio(6)	14.0		%	13.3		%	12.7		%	12.3		%	12.6		%
Common equity Tier 1 capital ratio	15.9		%	15.8		%	15.3		%	14.3		%	14.1		%



(1) Tangible common equity ("TCE") is a non-GAAP measure. We believe TCE is a more meaningful measure of the net asset value of the Company to investors. For corresponding reconciliation of TCE to a GAAP financial measure, see Reconciliation of Non-GAAP Measures and Calculations of Regulatory Measures.
(2) Regulatory capital ratios at December 31, 2020 are preliminary and therefore subject to change.
(3) Capital ratios starting March 31, 2020 reflect election to delay for two years an estimate of CECL’s effect on regulatory capital in accordance with the interim final rule issued by U.S. banking agencies in March 2020.
(4) Total risk-based capital ratio is the ratio of total risk-based capital divided by risk-weighted assets.
(5) Tier 1 risk-based capital ratio is the ratio of Tier 1 capital divided by risk-weighted assets.
(6) Tier 1 leverage ratio is the ratio of Tier 1 capital divided by total average assets, after certain adjustments. Tier 1 leverage ratios are based upon the use of daily averages for all periods presented.


SYNCHRONY FINANCIAL
PLATFORM RESULTS
(unaudited, $ in millions)
	Quarter Ended														Twelve Months Ended
	Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Mar 31, 2020		Dec 31, 2019		4Q'20 vs. 4Q'19				Dec 31, 2020		Dec 31, 2019		YTD'20 vs. YTD'19
RETAIL CARD
Purchase volume(1)(2)	$	31,256	$	27,374	$	24,380	$	24,008	$	30,968	$	288	0.9	%	$	107,018	$	114,440	$	(7,422)	(6.5)	%
Period-end loan receivables	$	52,130	$	49,595	$	49,967	$	52,390	$	56,387	$	(4,257)	(7.5)	%	$	52,130	$	56,387	$	(4,257)	(7.5)	%
Average loan receivables, including held for sale	$	50,235	$	49,503	$	50,238	$	53,820	$	54,505	$	(4,270)	(7.8)	%	$	50,943	$	58,984	$	(8,041)	(13.6)	%
Average active accounts (in thousands)(2)(3)	49,001		47,065		46,970		53,018		54,662		(5,661)		(10.4)	%	49,258		57,073		(7,815)		(13.7)	%

Interest and fees on loans	$	2,719	$	2,619	$	2,640	$	3,037	$	3,143	$	(424)	(13.5)	%	$	11,015	$	13,557	$	(2,542)	(18.8)	%
Other income	$	50	$	84	$	56	$	59	$	77	$	(27)	(35.1)	%	$	249	$	277	$	(28)	(10.1)	%

Retailer share arrangements	$	(1,026)	$	(877)	$	(752)	$	(904)	$	(988)	$	(38)	3.8	%	$	(3,559)	$	(3,762)	$	203	(5.4)	%


PAYMENT SOLUTIONS
Purchase volume(1)(2)	$	5,942	$	5,901	$	4,823	$	5,375	$	6,402	$	(460)	(7.2)	%	$	22,041	$	23,880	$	(1,839)	(7.7)	%
Period-end loan receivables	$	20,153	$	19,550	$	19,119	$	19,973	$	20,528	$	(375)	(1.8)	%	$	20,153	$	20,528	$	(375)	(1.8)	%
Average loan receivables, including held for sale	$	19,734	$	19,247	$	19,065	$	20,344	$	20,701	$	(967)	(4.7)	%	$	19,597	$	19,918	$	(321)	(1.6)	%
Average active accounts (in thousands)(2)(3)	11,536		11,497		11,900		12,681		12,713		(1,177)		(9.3)	%	11,921		12,451		(530)		(4.3)	%

Interest and fees on loans	$	673	$	650	$	632	$	706	$	737	$	(64)	(8.7)	%	$	2,661	$	2,829	$	(168)	(5.9)	%
Other income	$	4	$	13	$	14	$	13	$	4	$	—	—	%	$	44	$	15	$	29	193.3	%

Retailer share arrangements	$	(17)	$	(20)	$	(18)	$	(18)	$	(37)	$	20	(54.1)	%	$	(73)	$	(85)	$	12	(14.1)	%


CARECREDIT
Purchase volume(1)	$	2,676	$	2,738	$	1,952	$	2,659	$	2,842	$	(166)	(5.8)	%	$	10,025	$	11,091	$	(1,066)	(9.6)	%
Period-end loan receivables	$	9,584	$	9,376	$	9,227	$	10,106	$	10,300	$	(716)	(7.0)	%	$	9,584	$	10,300	$	(716)	(7.0)	%
Average loan receivables, including held for sale	$	9,483	$	9,255	$	9,394	$	10,264	$	10,170	$	(687)	(6.8)	%	$	9,598	$	9,747	$	(149)	(1.5)	%
Average active accounts (in thousands)(3)	5,724		5,708		5,966		6,379		6,359		(635)		(10.0)	%	5,952		6,197		(245)		(4.0)	%

Interest and fees on loans	$	589	$	552	$	536	$	597	$	612	$	(23)	(3.8)	%	$	2,274	$	2,319	$	(45)	(1.9)	%
Other income	$	28	$	34	$	25	$	25	$	23	$	5	21.7	%	$	112	$	79	$	33	41.8	%

Retailer share arrangements	$	(4)	$	(2)	$	(3)	$	(4)	$	(4)	$	—	—	%	$	(13)	$	(11)	$	(2)	18.2	%


TOTAL SYF
Purchase volume(1)(2)	$	39,874	$	36,013	$	31,155	$	32,042	$	40,212	$	(338)	(0.8)	%	$	139,084	$	149,411	$	(10,327)	(6.9)	%
Period-end loan receivables	$	81,867	$	78,521	$	78,313	$	82,469	$	87,215	$	(5,348)	(6.1)	%	$	81,867	$	87,215	$	(5,348)	(6.1)	%
Average loan receivables, including held for sale	$	79,452	$	78,005	$	78,697	$	84,428	$	85,376	$	(5,924)	(6.9)	%	$	80,138	$	88,649	$	(8,511)	(9.6)	%
Average active accounts (in thousands)(2)(3)	66,261		64,270		64,836		72,078		73,734		(7,473)		(10.1)	%	67,131		75,721		(8,590)		(11.3)	%

Interest and fees on loans	$	3,981	$	3,821	$	3,808	$	4,340	$	4,492	$	(511)	(11.4)	%	$	15,950	$	18,705	$	(2,755)	(14.7)	%
Other income	$	82	$	131	$	95	$	97	$	104	$	(22)	(21.2)	%	$	405	$	371	$	34	9.2	%

Retailer share arrangements	$	(1,047)	$	(899)	$	(773)	$	(926)	$	(1,029)	$	(18)	1.7	%	$	(3,645)	$	(3,858)	$	213	(5.5)	%


(1) Purchase volume, or net credit sales, represents the aggregate amount of charges incurred on credit cards or other credit product accounts less returns during the period.
(2) Includes activity and balances associated with loan receivables held for sale.
(3) Active accounts represent credit card or installment loan accounts on which there has been a purchase, payment or outstanding balance in the current month.


SYNCHRONY FINANCIAL
RECONCILIATION OF NON-GAAP MEASURES AND CALCULATIONS OF REGULATORY MEASURES(1)
(unaudited, $ in millions, except per share statistics)
	Quarter Ended
	Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Mar 31, 2020		Dec 31, 2019
COMMON EQUITY AND REGULATORY CAPITAL MEASURES(2)
GAAP Total equity	$	12,701	$	12,099	$	11,899	$	11,970	$	15,088
Less: Preferred stock	(734)		(734)		(734)		(734)		(734)
Less: Goodwill	(1,078)		(1,078)		(1,078)		(1,078)		(1,078)
Less: Intangible assets, net	(1,125)		(1,091)		(1,166)		(1,208)		(1,265)
Tangible common equity	$	9,764	$	9,196	$	8,921	$	8,950	$	12,011
Add: CECL transition amount	2,686		2,656		2,570		2,417		—



Adjustments for certain deferred tax liabilities and certain items in accumulated comprehensive income (loss)	341		305		302		304		319
Common equity Tier 1	$	12,791	$	12,157	$	11,793	$	11,671	$	12,330
Preferred stock	734		734		734		734		734
Tier 1 capital	$	13,525	$	12,891	$	12,527	$	12,405	$	13,064

Add: Allowance for credit losses includible in risk-based capital	1,079		1,034		1,031		1,082		1,147
Total Risk-based capital	$	14,604	$	13,925	$	13,558	$	13,487	$	14,211

ASSET MEASURES(2)
Total average assets	$	95,965	$	96,340	$	97,958	$	100,722	$	106,078
Adjustments for:
Add: CECL transition amount	2,686		2,656		2,570		2,417		—
Disallowed goodwill and other disallowed intangible assets (net of related deferred tax liabilities) and other	(1,924)		(1,906)		(1,980)		(2,010)		(2,059)

Total assets for leverage purposes	$	96,727	$	97,090	$	98,548	$	101,129	$	104,019


Risk-weighted assets	$	80,561	$	76,990	$	77,048	$	81,639	$	87,302

CECL FULLY PHASED-IN CAPITAL MEASURES
Tier 1 capital	$	13,525	$	12,891	$	12,527	$	12,405	$	13,064
Less: CECL transition adjustment	(2,686)		(2,656)		(2,570)		(2,417)		—
Tier 1 capital (CECL fully phased-in)	10,839		10,235		9,957		9,988		13,064
Add: Allowance for credit losses	10,265		10,146		9,802		9,175		5,602
Tier 1 capital (CECL fully phased-in) + Reserves for credit losses	$	21,104	$	20,381	$	19,759	$	19,163	$	18,666

Risk-weighted assets	$	80,561	$	76,990	$	77,048	$	81,639	$	87,302
Less: CECL transition adjustment	(2,477)		(2,447)		(2,361)		(2,204)		—
Risk-weighted assets (CECL fully phased-in)	$	78,084	$	74,543	$	74,687	$	79,435	$	87,302

TANGIBLE COMMON EQUITY PER SHARE
GAAP book value per share	$	20.49	$	19.47	$	19.13	$	19.27	$	23.31
Less: Goodwill	(1.85)		(1.85)		(1.85)		(1.85)		(1.75)
Less: Intangible assets, net	(1.92)		(1.87)		(2.00)		(2.07)		(2.06)
Tangible common equity per share	$	16.72	$	15.75	$	15.28	$	15.35	$	19.50

(1) Regulatory measures at December 31, 2020 are presented on an estimated basis.
(2) Capital ratios starting March 31, 2020 reflect election to delay for two years an estimate of CECL’s effect on regulatory capital in accordance with the interim final rule issued by U.S. banking agencies in March 2020


						Emerging growth company			☐


Item 2.02			Results of Operations and Financial Condition.


Item 9.01			Financial Statements and Exhibits.