SYF 8-K
Synchrony Financial (SYF)
8-K
2026-01-27
For: 2026-01-27
View Original
Added on
July 04, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report
(Date of earliest event reported)
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
| (Address of principal executive offices) | (Zip Code) | ||||||||||
(203 ) 585-2400
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| 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)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities Registered Pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
| Emerging growth company | |||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 2.02 Results of Operations and Financial Condition.
On January 27, 2026 , Synchrony Financial (the “Company”) issued a press release setting forth the Company’s fourth quarter 2025 earnings. A copy of the Company’s press release is being furnished as Exhibit 99.1 and hereby incorporated by reference. The information furnished pursuant to this Item 2.02, including Exhibits, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Exchange Act.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
The following exhibits are being furnished as part of this report:
| Number | Description | |||||||
| 104 | The cover page from this Current Report on Form 8-K, formatted in Inline XBRL | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
SYNCHRONY FINANCIAL | ||||||||||||||||||||
| Date: January 27, 2026 | By: | /s/ Jonathan Mothner | ||||||||||||||||||
Name: | Jonathan Mothner | |||||||||||||||||||
Title: | Executive Vice President, Chief Risk and Legal Officer | |||||||||||||||||||
 | Exhibit 99.1 For Immediate Release Synchrony Financial (NYSE: SYF) January 27, 2026 | ||||||||||
Fourth Quarter 2025 Results and Key Metrics
STAMFORD, Conn - Synchrony Financial (NYSE: SYF) today announced fourth quarter 2025 net earnings of $751 million, or $2.04 per diluted share, and included a $51 million after-tax restructuring charge related to a voluntary employee early retirement program, or $0.14 per diluted share. This compared to $774 million, or $1.91 per diluted share in the fourth quarter 2024.
CEO Commentary
“Synchrony’s fourth quarter performance capped off a year of strong execution and set the stage to drive our momentum forward in the years ahead,” said Brian Doubles, Synchrony’s President and Chief Executive Officer. “We advanced our key strategic priorities by expanding our reach and penetration, and optimizing the outcomes for the customers, partners and the hundreds of thousands of small and mid-sized businesses we serve across the country.”
“As a result, Synchrony achieved sequentially stronger new account, purchase volume and receivable growth across our portfolio during the fourth quarter, culminating in the addition of over 20 million new accounts, engagement with nearly 70 million customers, and generation of over $182 billion of purchase volume in 2025 – all while delivering on an improved credit trajectory and driving stronger profitability for the year.”
“Synchrony has built a legacy of driving strong results amid an ever-evolving landscape, solidifying our leadership as a partner of choice and positioning us well for 2026 and beyond, assuming normal operating conditions. We believe that, as we continue to deliver products and experiences with enduring appeal and unmistakable value, Synchrony is further embedding ourselves at the center of American commerce, to power strong risk-adjusted growth and generate considerable long-term value for our stakeholders.”
2.5% | 12.6% | $1.1B | $103.8B | |||||||||||||||||
| Return on Assets | CET1 Ratio | Capital Returned | Loan Receivables | |||||||||||||||||
Key Operating and Financial Metrics*
•Purchase volume increased 3% to $49.5 billion
•Loan receivables decreased 1% to $103.8 billion, which included the sale of $0.2 billion in the quarter
•Average active accounts decreased 1% to 69.3 million
•Net interest margin increased 82 basis points to 15.83%
•Efficiency ratio increased 360 basis points to 36.9%, which included an approximate 180 basis point increase related to restructuring costs
•Return on assets decreased 10 basis points to 2.5%
•Return on equity decreased 130 basis points to 17.6%
•Return on tangible common equity** decreased 120 basis points to 21.8%
•Book value per share increased 13% to $44.74
•Tangible book value per share** increased 9% to $37.21
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CFO Commentary
“Synchrony’s consistent investment in, and strong execution across, our business over the last year enabled continued innovation across our products and customer experiences, while preparing our portfolio for future growth,” said Brian Wenzel, Synchrony’s Executive Vice President and Chief Financial Officer. “Synchrony's fourth quarter and full year financial results delivered strong risk-adjusted returns through evolving market conditions. We achieved record fourth quarter purchase volume, reflecting stronger spend growth across four of our five platforms and loan receivable growth in three of those platforms, even while maintaining our net credit restrictive position in the fourth quarter.”
“In addition, the combination of our underwriting discipline and the efficacy of our credit actions have returned our portfolio to within our target net charge-off range of 5.5 to 6.0% and, despite the effects of elevated payment behavior in our portfolio, Net interest income increased as the impact of our product, pricing and policy changes (or "PPPCs") grew and as we repriced our funding liabilities. The combination of these trends drove enhanced program profitability, which was shared through our RSAs — maintaining economic alignment with our partners and enabling them to reinvest in customers and drive loyalty amidst of backdrop of more discerning spend behavior.”
“As we look to 2026, we will remain disciplined in our underwriting, credit strategy, and our expense management, while also investing in our growth and innovation to drive continued progress toward our long-term financial targets – with the goal of delivering strong earnings and returns for our shareholders.”
Business Highlights
•Added or renewed more than 25 partners in the quarter, including Bob’s Discount Furniture, RH and Polaris.
•Announced an exclusive, multi-year agreement with Bob’s Discount Furniture to offer short- and long-term promotional financing options to customers at more than 200 Bob’s locations.
•Renewed nearly 20-year partnership with Polaris, a leading manufacturer of off-road vehicles, to provide customers with access to customized promotional financing and loan options through Polaris’ extensive U.S. dealer network.
Financial Highlights
•Interest and fees on loans increased 1% to $5.5 billion as expansion in loan receivables yield, primarily reflecting the impact of our PPPCs, was partially offset by a combination of lower benchmark rates and lower late fee incidence.
•Net interest income increased $169 million, or 4%, to $4.8 billion, primarily driven by higher loan receivables yield and lower interest-bearing liabilities cost associated with lower benchmark rates, partially offset by lower liquidity portfolio yield.
•Retailer share arrangements increased $175 million, or 19%, to $1.1 billion, reflecting program performance which included lower net charge-offs and the impact of our PPPCs.
•Provision for credit losses decreased $119 million to $1.4 billion, driven by lower net charge-offs, partially offset by a reserve build of $76 million versus a reserve release of $100 million in the prior year.
•Other expense increased $132 million, or 10%, to $1.4 billion, primarily driven by employee costs and technology investments. Employee costs increased primarily driven by a $67 million restructuring charge related to a voluntary employee early retirement program, as well as a shift in headcount mix.
•Net earnings decreased 3% to $751 million, compared to $774 million.
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Credit Quality
•Loans 30+ days past due as a percentage of total period-end loan receivables were 4.49% compared to 4.70% in the prior year, a decrease of 21 basis points and 13 basis points below the average of the fourth quarters in 2017 through 2019.
•Loans 90+ days past due as a percentage of total period-end loan receivables were 2.17% compared to 2.40% in the prior year, a decrease of 23 basis points and 7 basis points below the average of the fourth quarters in 2017 through 2019.
•Net charge-offs as a percentage of total average loan receivables were 5.37% compared to 6.45% in the prior year, a decrease of 108 basis points, and 12 basis points below the average of the fourth quarters in 2017 through 2019.
•The allowance for credit losses as a percentage of total period-end loan receivables was 10.06%, compared to 10.35% in the third quarter of 2025 and 10.44% in the fourth quarter of 2024.
Sales Platform Highlights
•Period-end loan receivables were up 2% in both Digital and Diversified & Value, up 1% in Health & Wellness, down 2% in Lifestyle and down 5% in Home & Auto. These results reflected improving purchase volume trends in the fourth quarter as compared to the first half of the year, offset by the effects of higher payment rates as a result of our improved credit mix. Growth of interest and fees on loans ranged from down 2% to up 5%, as expansion in loan receivables yield, primarily reflecting the impact of our PPPCs, was offset by a combination of lower benchmark rates and lower late fee incidence.
•Home & Auto purchase volume decreased 2%, reflecting selective spend in Home Improvement and lower average active accounts, partially offset by strong growth in spend per account.
•Digital purchase volume increased 6%, driven by higher spend per account and strong customer response to enhanced product offerings and refreshed value propositions.
•Diversified & Value purchase volume increased 4%, primarily reflecting the impact of partner expansion this year.
•Health & Wellness purchase volume increased 4%, reflecting growth in Pet & Audiology, partially offset by lower spend in Cosmetic. In addition, higher spend per account exceeded the impact of lower average active accounts.
•Lifestyle purchase volume increased 3%, primarily reflecting higher broad-based spend per account, partially offset by lower average active accounts.
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Balance Sheet, Liquidity, & Capital
•Loan receivables of $103.8 billion, including the sale of $0.2 billion in the quarter, decreased 1%; purchase volume increased 3% and average active accounts decreased 1%.
•Deposits decreased 1% or $0.9 billion to $81.1 billion and comprised 84% of funding.
•Total liquid assets were $16.6 billion, or 13.9% of total assets.
•The Company returned $1.1 billion in capital to shareholders, including $952 million of share repurchases and $106 million of common stock dividends. As of December 31, 2025, the Company had a total remaining repurchase authorization of $1.2 billion for the period ending June 30, 2026.
•The estimated Common Equity Tier 1 ratio was 12.6% compared to 13.3%, and the estimated Tier 1 Capital ratio was 13.8% compared to 14.5% in the prior year.
* All comparisons are for the fourth quarter of 2025 compared to the fourth quarter of 2024, unless otherwise noted.
** Return on tangible common equity represents net earnings available to common stockholders as a percentage of average tangible common equity. Tangible common equity and tangible book value per share are non-GAAP measures. See non-GAAP reconciliation in the financial supplement.
Corresponding Financial Tables and Information
Investors should review the foregoing summary and discussion of Synchrony Financial's earnings and financial condition in conjunction with the financial results presentation, financial supplement and information that follow, the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, as filed February 7, 2025, and the Company’s forthcoming Annual Report on Form 10-K for the fiscal year ended December 31, 2025. The detailed financial tables and other information are also available on the Investor Relations page of the Company’s website at www.investors.synchrony.com. This information is also furnished in a Current Report on Form 8-K filed with the SEC today.
Conference Call and Webcast
On Tuesday, January 27, 2026, at 8:00 a.m. Eastern Time, Brian Doubles, President and Chief Executive Officer, and Brian Wenzel Sr., Executive Vice President and Chief Financial Officer, will host a conference call to review the financial results and outlook for certain business drivers. The conference call can be accessed via an audio webcast through the Investor Relations page on the Synchrony Financial corporate website, www.investors.synchrony.com, under Events and Presentations. A replay will also be available on the website.
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About Synchrony Financial
Synchrony (NYSE: SYF) is a leading consumer financing company that has been at the heart of American commerce and opportunity for nearly a century. Synchrony delivers credit and banking products that empower tens of millions of consumers to improve their financial lives and access what matters most. Leveraging innovative solutions that are shaping the future of retail commerce, Synchrony supports the growth and success of some of the nation’s most respected brands, alongside hundreds of thousands of small and midsize businesses, including health and wellness providers. Committed to excellence in service and culture, Synchrony is honored to be ranked the #2 Best Company to Work For® in the U.S. by Fortune magazine and Great Place to Work®.
For more information, visit www.synchrony.com
Investor Relations Media Relations
Kathryn Miller Tyler Allen
(203) 585-6291 (551) 370-2902
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Cautionary Statement Regarding Forward-Looking Statements
This news release contains certain forward-looking statements as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the "safe harbor" created by those sections. Forward-looking statements may be identified by words such as "expects," "intends," "anticipates," "plans," "believes," "seeks," "targets," "outlook," "estimates," "will," "should," "may," “aim,” “focus,” “goal,” “confident,” “trajectory,” "priorities," "designed," "consider" or words of similar meaning, but these words are not the exclusive means of identifying forward-looking statements. Forward-looking statements are based on management's current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, actual results could differ materially from those indicated in these forward-looking statements. Factors that could cause actual results to differ materially include global political, economic, business, competitive, market, regulatory and other factors and risks, such as: the impact of macroeconomic conditions, including factors impacting consumer confidence and economic growth in the United States, such as inflation, interest rates, tariffs (including retaliatory tariffs) and an economic downturn or recession, and whether industry trends we have identified develop as anticipated; the impact of changes made or influenced by the U.S. presidential administration and Congress on fiscal, monetary and regulatory policy, including with respect to constraints on the pricing of our credit products; the impact of the federal government shutdown in October and November 2025; retaining existing partners and attracting new partners, concentration of our revenue in a small number of partners, and promotion and support of our products by our partners; cyber-attacks or other security incidents or breaches; disruptions in the operations of our and our outsourced partners' computer systems and data centers; the financial performance of our partners; product, pricing, and policy changes related to the Consumer Financial Protection Bureau’s (the “CFPB”) final rule on credit card late fees, which was vacated in April 2025; the sufficiency of our allowance for credit losses and the accuracy of the assumptions or estimates used in preparing our financial statements, including those related to the CECL accounting guidance; higher borrowing costs and adverse financial market conditions impacting our funding and liquidity, and any reduction in our credit ratings; our ability to grow our deposits in the future; damage to our reputation; our ability to securitize our loan receivables, occurrence of an early amortization of our securitization facilities, loss of the right to service or subservice our securitized loan receivables, and lower payment rates on our securitized loan receivables; changes in benchmark or market interest rates; effectiveness of our risk management processes and procedures, reliance on models which may be inaccurate or misinterpreted, and our ability to manage our credit risk; our ability to offset increases in our costs in retailer share arrangements; competition in the consumer finance industry; our concentration in the U.S. consumer credit market and susceptibility to market fluctuations and legislative and regulatory developments; our ability to successfully develop and commercialize new or enhanced products and services; our ability to realize the value of acquisitions, dispositions and strategic investments; reductions in interchange fees; fraudulent activity; failure of third-parties to provide various services that are important to our operations; international risks and compliance and regulatory risks and costs associated with international operations; alleged infringement of intellectual property rights of others and our ability to protect our intellectual property; litigation, regulatory actions and compliance issues; our ability to attract, retain and motivate key officers and employees; tax legislation initiatives or challenges to our tax positions and/or interpretations, and state sales tax rules and regulations; regulation, supervision, examination and enforcement of our business by governmental authorities, the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act and other legislative and regulatory developments and the impact of the CFPB’s regulation of our business, including new requirements and constraints the Company and the Bank are or will become subject to as a result of having $100 billion or more in total assets; impact of capital adequacy rules and liquidity requirements; restrictions that limit our ability to pay dividends and repurchase our common stock, and restrictions that limit the Bank’s ability to pay dividends to us; regulations relating to privacy, information security and data protection; use of third-party vendors and ongoing third-party business relationships; and failure to comply with anti-money laundering and anti-terrorism financing laws.
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Cautionary Statement Regarding Forward-Looking Statements (Continued)
For the reasons described above, we caution you against relying on any forward-looking statements, which should also be read in conjunction with the other cautionary statements that are included elsewhere in this news release and in our public filings, including under the heading "Risk Factors Relating to our Business" and “Risk Factors Relating to Regulation” in the Company's most recent Annual Report on Form 10-K. You should not consider any list of such factors to be an exhaustive statement of all the risks, uncertainties, or potentially inaccurate assumptions that could cause our current expectations or beliefs to change. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as otherwise may be required by law.
Non-GAAP Measures
The information provided herein includes measures we refer to as "tangible common equity" and “tangible book value per share,” which are not prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). For a reconciliation of these non-GAAP measures to the most directly comparable GAAP measures, please see the detailed financial tables and information that follow. For a statement regarding the usefulness of these measures to investors, please see the Company's Current Report on Form 8-K filed with the SEC today.
Exhibit 99.2
| SYNCHRONY FINANCIAL | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FINANCIAL SUMMARY | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (unaudited, in millions, except per share statistics) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quarter Ended | Twelve Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | 4Q'25 vs. 4Q'24 | Dec 31, 2025 | Dec 31, 2024 | YTD'25 vs. YTD'24 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| EARNINGS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 4,761 | $ | 4,720 | $ | 4,521 | $ | 4,464 | $ | 4,592 | $ | 169 | 3.7 | % | $ | 18,466 | $ | 18,011 | $ | 455 | 2.5 | % | |||||||||||||||||||||||||||||||||||||
| Retailer share arrangements | (1,094) | (1,024) | (992) | (895) | (919) | (175) | 19.0 | % | (4,005) | (3,407) | (598) | 17.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Other income | 126 | 127 | 118 | 149 | 128 | (2) | (1.6) | % | 520 | 1,521 | (1,001) | (65.8) | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Net revenue | 3,793 | 3,823 | 3,647 | 3,718 | 3,801 | (8) | (0.2) | % | 14,981 | 16,125 | (1,144) | (7.1) | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Provision for credit losses | 1,442 | 1,146 | 1,146 | 1,491 | 1,561 | (119) | (7.6) | % | 5,225 | 6,733 | (1,508) | (22.4) | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Other expense | 1,399 | 1,248 | 1,245 | 1,243 | 1,267 | 132 | 10.4 | % | 5,135 | 4,839 | 296 | 6.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Earnings before provision for income taxes | 952 | 1,429 | 1,256 | 984 | 973 | (21) | (2.2) | % | 4,621 | 4,553 | 68 | 1.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Provision for income taxes | 201 | 352 | 289 | 227 | 199 | 2 | 1.0 | % | 1,069 | 1,054 | 15 | 1.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Net earnings | $ | 751 | $ | 1,077 | $ | 967 | $ | 757 | $ | 774 | $ | (23) | (3.0) | % | $ | 3,552 | $ | 3,499 | $ | 53 | 1.5 | % | |||||||||||||||||||||||||||||||||||||
| Net earnings available to common stockholders | $ | 730 | $ | 1,057 | $ | 946 | $ | 736 | $ | 753 | $ | (23) | (3.1) | % | $ | 3,469 | $ | 3,427 | $ | 42 | 1.2 | % | |||||||||||||||||||||||||||||||||||||
| COMMON SHARE STATISTICS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Basic EPS | $ | 2.07 | $ | 2.89 | $ | 2.51 | $ | 1.91 | $ | 1.93 | $ | 0.14 | 7.3 | % | $ | 9.38 | $ | 8.64 | $ | 0.74 | 8.6 | % | |||||||||||||||||||||||||||||||||||||
| Diluted EPS | $ | 2.04 | $ | 2.86 | $ | 2.50 | $ | 1.89 | $ | 1.91 | $ | 0.13 | 6.8 | % | $ | 9.28 | $ | 8.55 | $ | 0.73 | 8.5 | % | |||||||||||||||||||||||||||||||||||||
| Dividend declared per share | $ | 0.30 | $ | 0.30 | $ | 0.30 | $ | 0.25 | $ | 0.25 | $ | 0.05 | 20.0 | % | $ | 1.15 | $ | 1.00 | $ | 0.15 | 15.0 | % | |||||||||||||||||||||||||||||||||||||
| Common stock price | $ | 83.43 | $ | 71.05 | $ | 66.74 | $ | 52.94 | $ | 65.00 | $ | 18.43 | 28.4 | % | $ | 83.43 | $ | 65.00 | $ | 18.43 | 28.4 | % | |||||||||||||||||||||||||||||||||||||
| Book value per share | $ | 44.74 | $ | 44.00 | $ | 42.30 | $ | 40.37 | $ | 39.55 | $ | 5.19 | 13.1 | % | $ | 44.74 | $ | 39.55 | $ | 5.19 | 13.1 | % | |||||||||||||||||||||||||||||||||||||
Tangible book value per share(1) | $ | 37.21 | $ | 37.93 | $ | 36.55 | $ | 34.79 | $ | 34.07 | $ | 3.14 | 9.2 | % | $ | 37.21 | $ | 34.07 | $ | 3.14 | 9.2 | % | |||||||||||||||||||||||||||||||||||||
| Beginning common shares outstanding | 360.1 | 371.9 | 380.5 | 388.3 | 389.2 | (29.1) | (7.5) | % | 388.3 | 406.9 | (18.6) | (4.6) | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Issuance of common shares | — | — | — | — | — | — | NM | — | — | — | NM | ||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation | 0.3 | 0.3 | 0.2 | 2.0 | 0.6 | (0.3) | (50.0) | % | 2.8 | 3.9 | (1.1) | (28.2) | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Shares repurchased | (13.0) | (12.1) | (8.8) | (9.8) | (1.5) | (11.5) | NM | (43.7) | (22.5) | (21.2) | 94.2 | % | |||||||||||||||||||||||||||||||||||||||||||||||
| Ending common shares outstanding | 347.4 | 360.1 | 371.9 | 380.5 | 388.3 | (40.9) | (10.5) | % | 347.4 | 388.3 | (40.9) | (10.5) | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Weighted average common shares outstanding | 352.7 | 365.9 | 376.2 | 385.2 | 389.3 | (36.6) | (9.4) | % | 369.9 | 396.5 | (26.6) | (6.7) | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Weighted average common shares outstanding (fully diluted) | 357.6 | 369.9 | 379.1 | 389.4 | 394.8 | (37.2) | (9.4) | % | 373.9 | 400.6 | (26.7) | (6.7) | % | ||||||||||||||||||||||||||||||||||||||||||||||
| (1) Tangible book value per share is a non-GAAP measure, calculated based on Tangible common equity divided by common shares outstanding. For corresponding reconciliation of this measure to a GAAP financial measure, see Reconciliation of Non-GAAP Measures and Calculations of Regulatory Measures. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1
| SYNCHRONY FINANCIAL | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SELECTED METRICS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (unaudited, $ in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quarter Ended | Twelve Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | 4Q'25 vs. 4Q'24 | Dec 31, 2025 | Dec 31, 2024 | YTD'25 vs. YTD'24 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| PERFORMANCE METRICS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Return on assets(1) | 2.5 | % | 3.6 | % | 3.2 | % | 2.5 | % | 2.6 | % | (0.1) | % | 3.0 | % | 2.9 | % | 0.1 | % | |||||||||||||||||||||||||||||||||||||||||
Return on equity(2) | 17.6 | % | 25.1 | % | 23.1 | % | 18.4 | % | 18.9 | % | (1.3) | % | 21.1 | % | 22.5 | % | (1.4) | % | |||||||||||||||||||||||||||||||||||||||||
Return on tangible common equity(3) | 21.8 | % | 30.6 | % | 28.3 | % | 22.4 | % | 23.0 | % | (1.2) | % | 25.8 | % | 27.5 | % | (1.7) | % | |||||||||||||||||||||||||||||||||||||||||
Net interest margin(4) | 15.83 | % | 15.62 | % | 14.78 | % | 14.74 | % | 15.01 | % | 0.82 | % | 15.24 | % | 14.76 | % | 0.48 | % | |||||||||||||||||||||||||||||||||||||||||
| Net revenue as a % of average loan receivables, including held for sale | 14.90 | % | 15.18 | % | 14.74 | % | 14.93 | % | 14.76 | % | 0.14 | % | 14.94 | % | 15.85 | % | (0.91) | % | |||||||||||||||||||||||||||||||||||||||||
Efficiency ratio(5) | 36.9 | % | 32.6 | % | 34.1 | % | 33.4 | % | 33.3 | % | 3.6 | % | 34.3 | % | 30.0 | % | 4.3 | % | |||||||||||||||||||||||||||||||||||||||||
| Other expense as a % of average loan receivables, including held for sale | 5.50 | % | 4.96 | % | 5.03 | % | 4.99 | % | 4.92 | % | 0.58 | % | 5.12 | % | 4.76 | % | 0.36 | % | |||||||||||||||||||||||||||||||||||||||||
| Effective income tax rate | 21.1 | % | 24.6 | % | 23.0 | % | 23.1 | % | 20.5 | % | 0.6 | % | 23.1 | % | 23.1 | % | — | % | |||||||||||||||||||||||||||||||||||||||||
| CREDIT QUALITY METRICS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net charge-offs as a % of average loan receivables, including held for sale | 5.37 | % | 5.16 | % | 5.70 | % | 6.38 | % | 6.45 | % | (1.08) | % | 5.65 | % | 6.31 | % | (0.66) | % | |||||||||||||||||||||||||||||||||||||||||
30+ days past due as a % of period-end loan receivables(6) | 4.49 | % | 4.39 | % | 4.18 | % | 4.52 | % | 4.70 | % | (0.21) | % | 4.49 | % | 4.70 | % | (0.21) | % | |||||||||||||||||||||||||||||||||||||||||
90+ days past due as a % of period-end loan receivables(6) | 2.17 | % | 2.12 | % | 2.06 | % | 2.29 | % | 2.40 | % | (0.23) | % | 2.17 | % | 2.40 | % | (0.23) | % | |||||||||||||||||||||||||||||||||||||||||
| Net charge-offs | $ | 1,367 | $ | 1,298 | $ | 1,411 | $ | 1,588 | $ | 1,661 | $ | (294) | (17.7) | % | $ | 5,664 | $ | 6,420 | $ | (756) | (11.8) | % | |||||||||||||||||||||||||||||||||||||
Loan receivables delinquent over 30 days(6) | $ | 4,660 | $ | 4,400 | $ | 4,173 | $ | 4,505 | $ | 4,925 | $ | (265) | (5.4) | % | $ | 4,660 | $ | 4,925 | $ | (265) | (5.4) | % | |||||||||||||||||||||||||||||||||||||
Loan receivables delinquent over 90 days(6) | $ | 2,248 | $ | 2,128 | $ | 2,059 | $ | 2,285 | $ | 2,512 | $ | (264) | (10.5) | % | $ | 2,248 | $ | 2,512 | $ | (264) | (10.5) | % | |||||||||||||||||||||||||||||||||||||
| Allowance for credit losses (period-end) | $ | 10,442 | $ | 10,373 | $ | 10,564 | $ | 10,828 | $ | 10,929 | $ | (487) | (4.5) | % | $ | 10,442 | $ | 10,929 | $ | (487) | (4.5) | % | |||||||||||||||||||||||||||||||||||||
Allowance coverage ratio(7) | 10.06 | % | 10.35 | % | 10.59 | % | 10.87 | % | 10.44 | % | (0.38) | % | 10.06 | % | 10.44 | % | (0.38) | % | |||||||||||||||||||||||||||||||||||||||||
| BUSINESS METRICS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase volume(8) | $ | 49,476 | $ | 46,005 | $ | 46,084 | $ | 40,720 | $ | 47,955 | $ | 1,521 | 3.2 | % | $ | 182,285 | $ | 182,173 | $ | 112 | 0.1 | % | |||||||||||||||||||||||||||||||||||||
| Period-end loan receivables | $ | 103,808 | $ | 100,178 | $ | 99,776 | $ | 99,608 | $ | 104,721 | $ | (913) | (0.9) | % | $ | 103,808 | $ | 104,721 | $ | (913) | (0.9) | % | |||||||||||||||||||||||||||||||||||||
| Credit cards | $ | 96,346 | $ | 92,550 | $ | 92,036 | $ | 91,909 | $ | 96,818 | $ | (472) | (0.5) | % | $ | 96,346 | $ | 96,818 | $ | (472) | (0.5) | % | |||||||||||||||||||||||||||||||||||||
| Consumer installment loans | $ | 5,548 | $ | 5,584 | $ | 5,669 | $ | 5,736 | $ | 5,971 | $ | (423) | (7.1) | % | $ | 5,548 | $ | 5,971 | $ | (423) | (7.1) | % | |||||||||||||||||||||||||||||||||||||
| Commercial credit products | $ | 1,833 | $ | 1,961 | $ | 1,980 | $ | 1,859 | $ | 1,826 | $ | 7 | 0.4 | % | $ | 1,833 | $ | 1,826 | $ | 7 | 0.4 | % | |||||||||||||||||||||||||||||||||||||
| Other | $ | 81 | $ | 83 | $ | 91 | $ | 104 | $ | 106 | $ | (25) | (23.6) | % | $ | 81 | $ | 106 | $ | (25) | (23.6) | % | |||||||||||||||||||||||||||||||||||||
| Average loan receivables, including held for sale | $ | 100,982 | $ | 99,885 | $ | 99,236 | $ | 101,021 | $ | 102,476 | $ | (1,494) | (1.5) | % | $ | 100,280 | $ | 101,733 | $ | (1,453) | (1.4) | % | |||||||||||||||||||||||||||||||||||||
Period-end active accounts (in thousands)(9) | 70,693 | 68,585 | 68,186 | 67,787 | 71,532 | (839) | (1.2) | % | 70,693 | 71,532 | (839) | (1.2) | % | ||||||||||||||||||||||||||||||||||||||||||||||
Average active accounts (in thousands)(9) | 69,304 | 68,318 | 68,050 | 69,315 | 70,299 | (995) | (1.4) | % | 68,876 | 70,904 | (2,028) | (2.9) | % | ||||||||||||||||||||||||||||||||||||||||||||||
| LIQUIDITY | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Liquid assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash and equivalents | $ | 14,973 | $ | 16,245 | $ | 19,457 | $ | 21,629 | $ | 14,711 | $ | 262 | 1.8 | % | $ | 14,973 | $ | 14,711 | $ | 262 | 1.8 | % | |||||||||||||||||||||||||||||||||||||
| Total liquid assets | $ | 16,562 | $ | 18,234 | $ | 21,796 | $ | 23,817 | $ | 17,159 | $ | (597) | (3.5) | % | $ | 16,562 | $ | 17,159 | $ | (597) | (3.5) | % | |||||||||||||||||||||||||||||||||||||
| Undrawn credit facilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Undrawn credit facilities | $ | 2,125 | $ | 2,125 | $ | 2,625 | $ | 2,625 | $ | 2,625 | $ | (500) | (19.0) | % | $ | 2,125 | $ | 2,625 | $ | (500) | (19.0) | % | |||||||||||||||||||||||||||||||||||||
Total liquid assets and undrawn credit facilities(10) | $ | 18,687 | $ | 20,359 | $ | 24,421 | $ | 26,442 | $ | 19,784 | $ | (1,097) | (5.5) | % | $ | 18,687 | $ | 19,784 | $ | (1,097) | (5.5) | % | |||||||||||||||||||||||||||||||||||||
| Liquid assets % of total assets | 13.91 | % | 15.59 | % | 18.09 | % | 19.52 | % | 14.36 | % | (0.45) | % | 13.91 | % | 14.36 | % | (0.45) | % | |||||||||||||||||||||||||||||||||||||||||
| Liquid assets including undrawn credit facilities % of total assets | 15.69 | % | 17.40 | % | 20.27 | % | 21.67 | % | 16.56 | % | (0.87) | % | 15.69 | % | 16.56 | % | (0.87) | % | |||||||||||||||||||||||||||||||||||||||||
| (1) Return on assets represents annualized net earnings as a percentage of average total assets. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (2) Return on equity represents annualized net earnings as a percentage of average total equity. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (3) Return on tangible common equity represents annualized 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 annualized net interest income divided by average total 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) Active accounts represent credit card or installment loan accounts on which there has been a purchase, payment or outstanding balance in the current month. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (10) Excludes uncommitted credit facilities and available borrowing capacity related to unencumbered assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2
| SYNCHRONY FINANCIAL | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| STATEMENTS OF EARNINGS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (unaudited, $ in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quarter Ended | Twelve Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | 4Q'25 vs. 4Q'24 | Dec 31, 2025 | Dec 31, 2024 | YTD'25 vs. YTD'24 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest income: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest and fees on loans | $ | 5,548 | $ | 5,510 | $ | 5,328 | $ | 5,312 | $ | 5,480 | $ | 68 | 1.2 | % | $ | 21,698 | $ | 21,596 | $ | 102 | 0.5 | % | |||||||||||||||||||||||||||||||||||||
| Interest on cash and debt securities | 186 | 221 | 258 | 238 | 230 | (44) | (19.1) | % | 903 | 1,049 | (146) | (13.9) | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Total interest income | 5,734 | 5,731 | 5,586 | 5,550 | 5,710 | 24 | 0.4 | % | 22,601 | 22,645 | (44) | (0.2) | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest on deposits | 781 | 812 | 855 | 882 | 917 | (136) | (14.8) | % | 3,330 | 3,806 | (476) | (12.5) | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Interest on borrowings of consolidated securitization entities | 104 | 105 | 104 | 104 | 104 | — | — | % | 417 | 427 | (10) | (2.3) | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Interest on senior unsecured notes | 88 | 94 | 106 | 100 | 97 | (9) | (9.3) | % | 388 | 401 | (13) | (3.2) | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Total interest expense | 973 | 1,011 | 1,065 | 1,086 | 1,118 | (145) | (13.0) | % | 4,135 | 4,634 | (499) | (10.8) | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income | 4,761 | 4,720 | 4,521 | 4,464 | 4,592 | 169 | 3.7 | % | 18,466 | 18,011 | 455 | 2.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Retailer share arrangements | (1,094) | (1,024) | (992) | (895) | (919) | (175) | 19.0 | % | (4,005) | (3,407) | (598) | 17.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Provision for credit losses | 1,442 | 1,146 | 1,146 | 1,491 | 1,561 | (119) | (7.6) | % | 5,225 | 6,733 | (1,508) | (22.4) | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income, after retailer share arrangements and provision for credit losses | 2,225 | 2,550 | 2,383 | 2,078 | 2,112 | 113 | 5.4 | % | 9,236 | 7,871 | 1,365 | 17.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Other income: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interchange revenue | 289 | 272 | 268 | 238 | 266 | 23 | 8.6 | % | 1,067 | 1,026 | 41 | 4.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Protection product revenue | 156 | 149 | 144 | 147 | 151 | 5 | 3.3 | % | 596 | 562 | 34 | 6.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Loyalty programs | (399) | (368) | (360) | (311) | (371) | (28) | 7.5 | % | (1,438) | (1,382) | (56) | 4.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Other | 80 | 74 | 66 | 75 | 82 | (2) | (2.4) | % | 295 | 1,315 | (1,020) | (77.6) | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Total other income | 126 | 127 | 118 | 149 | 128 | (2) | (1.6) | % | 520 | 1,521 | (1,001) | (65.8) | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Other expense: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Employee costs | 575 | 503 | 509 | 506 | 478 | 97 | 20.3 | % | 2,093 | 1,872 | 221 | 11.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Professional fees | 243 | 240 | 236 | 217 | 249 | (6) | (2.4) | % | 936 | 936 | — | — | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Marketing and business development | 148 | 120 | 127 | 116 | 147 | 1 | 0.7 | % | 511 | 524 | (13) | (2.5) | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Information processing | 239 | 226 | 215 | 219 | 207 | 32 | 15.5 | % | 899 | 803 | 96 | 12.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Other | 194 | 159 | 158 | 185 | 186 | 8 | 4.3 | % | 696 | 704 | (8) | (1.1) | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Total other expense | 1,399 | 1,248 | 1,245 | 1,243 | 1,267 | 132 | 10.4 | % | 5,135 | 4,839 | 296 | 6.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Earnings before provision for income taxes | 952 | 1,429 | 1,256 | 984 | 973 | (21) | (2.2) | % | 4,621 | 4,553 | 68 | 1.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Provision for income taxes | 201 | 352 | 289 | 227 | 199 | 2 | 1.0 | % | 1,069 | 1,054 | 15 | 1.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Net earnings | $ | 751 | $ | 1,077 | $ | 967 | $ | 757 | $ | 774 | $ | (23) | (3.0) | % | $ | 3,552 | $ | 3,499 | $ | 53 | 1.5 | % | |||||||||||||||||||||||||||||||||||||
| Net earnings available to common stockholders | $ | 730 | $ | 1,057 | $ | 946 | $ | 736 | $ | 753 | $ | (23) | (3.1) | % | $ | 3,469 | $ | 3,427 | $ | 42 | 1.2 | % | |||||||||||||||||||||||||||||||||||||
3
| SYNCHRONY FINANCIAL | ||||||||||||||||||||||||||||||||||||||
| STATEMENTS OF FINANCIAL POSITION | ||||||||||||||||||||||||||||||||||||||
| (unaudited, $ in millions) | ||||||||||||||||||||||||||||||||||||||
| Quarter Ended | ||||||||||||||||||||||||||||||||||||||
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Dec 31, 2025 vs. Dec 31, 2024 | |||||||||||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||||||||||||
| Cash and equivalents | $ | 14,973 | $ | 16,245 | $ | 19,457 | $ | 21,629 | $ | 14,711 | $ | 262 | 1.8 | % | ||||||||||||||||||||||||
| Debt securities | 2,348 | 2,716 | 2,905 | 2,724 | 3,079 | (731) | (23.7) | % | ||||||||||||||||||||||||||||||
| Loan receivables: | ||||||||||||||||||||||||||||||||||||||
| Unsecuritized loans held for investment | 81,408 | 79,207 | 78,566 | 79,186 | 83,382 | (1,974) | (2.4) | % | ||||||||||||||||||||||||||||||
| Restricted loans of consolidated securitization entities | 22,400 | 20,971 | 21,210 | 20,422 | 21,339 | 1,061 | 5.0 | % | ||||||||||||||||||||||||||||||
| Total loan receivables | 103,808 | 100,178 | 99,776 | 99,608 | 104,721 | (913) | (0.9) | % | ||||||||||||||||||||||||||||||
| Less: Allowance for credit losses | (10,442) | (10,373) | (10,564) | (10,828) | (10,929) | 487 | (4.5) | % | ||||||||||||||||||||||||||||||
| Loan receivables, net | 93,366 | 89,805 | 89,212 | 88,780 | 93,792 | (426) | (0.5) | % | ||||||||||||||||||||||||||||||
| Loan receivables held for sale | — | 192 | 191 | — | — | — | — | % | ||||||||||||||||||||||||||||||
| Goodwill | 1,363 | 1,274 | 1,274 | 1,274 | 1,274 | 89 | 7.0 | % | ||||||||||||||||||||||||||||||
| Intangible assets, net | 1,255 | 909 | 862 | 847 | 854 | 401 | 47.0 | % | ||||||||||||||||||||||||||||||
| Other assets | 5,790 | 5,843 | 6,604 | 6,772 | 5,753 | 37 | 0.6 | % | ||||||||||||||||||||||||||||||
| Total assets | $ | 119,095 | $ | 116,984 | $ | 120,505 | $ | 122,026 | $ | 119,463 | $ | (368) | (0.3) | % | ||||||||||||||||||||||||
| Liabilities and Equity | ||||||||||||||||||||||||||||||||||||||
| Deposits: | ||||||||||||||||||||||||||||||||||||||
| Interest-bearing deposit accounts | $ | 80,748 | $ | 79,513 | $ | 81,857 | $ | 83,030 | $ | 81,664 | $ | (916) | (1.1) | % | ||||||||||||||||||||||||
| Non-interest-bearing deposit accounts | 396 | 373 | 405 | 405 | 398 | (2) | (0.5) | % | ||||||||||||||||||||||||||||||
| Total deposits | 81,144 | 79,886 | 82,262 | 83,435 | 82,062 | (918) | (1.1) | % | ||||||||||||||||||||||||||||||
| Borrowings: | ||||||||||||||||||||||||||||||||||||||
| Borrowings of consolidated securitization entities | 8,415 | 7,666 | 8,340 | 8,591 | 7,842 | 573 | 7.3 | % | ||||||||||||||||||||||||||||||
| Senior and Subordinated unsecured notes | 6,767 | 6,765 | 7,669 | 8,418 | 7,620 | (853) | (11.2) | % | ||||||||||||||||||||||||||||||
| Total borrowings | 15,182 | 14,431 | 16,009 | 17,009 | 15,462 | (280) | (1.8) | % | ||||||||||||||||||||||||||||||
| Accrued expenses and other liabilities | 6,003 | 5,602 | 5,282 | 5,001 | 5,359 | 644 | 12.0 | % | ||||||||||||||||||||||||||||||
| Total liabilities | 102,329 | 99,919 | 103,553 | 105,445 | 102,883 | (554) | (0.5) | % | ||||||||||||||||||||||||||||||
| Equity: | ||||||||||||||||||||||||||||||||||||||
| Preferred stock | 1,222 | 1,222 | 1,222 | 1,222 | 1,222 | — | — | % | ||||||||||||||||||||||||||||||
| Common stock | 1 | 1 | 1 | 1 | 1 | — | — | % | ||||||||||||||||||||||||||||||
| Additional paid-in capital | 9,902 | 9,866 | 9,836 | 9,804 | 9,853 | 49 | 0.5 | % | ||||||||||||||||||||||||||||||
| Retained earnings | 24,598 | 23,978 | 23,036 | 22,209 | 21,635 | 2,963 | 13.7 | % | ||||||||||||||||||||||||||||||
| Accumulated other comprehensive income (loss) | (48) | (46) | (45) | (53) | (59) | 11 | (18.6) | % | ||||||||||||||||||||||||||||||
| Treasury stock | (18,909) | (17,956) | (17,098) | (16,602) | (16,072) | (2,837) | 17.7 | % | ||||||||||||||||||||||||||||||
| Total equity | 16,766 | 17,065 | 16,952 | 16,581 | 16,580 | 186 | 1.1 | % | ||||||||||||||||||||||||||||||
| Total liabilities and equity | $ | 119,095 | $ | 116,984 | $ | 120,505 | $ | 122,026 | $ | 119,463 | $ | (368) | (0.3) | % | ||||||||||||||||||||||||
4
| SYNCHRONY FINANCIAL | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| AVERAGE BALANCES, NET INTEREST INCOME AND NET INTEREST MARGIN | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (unaudited, $ in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quarter Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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(1) | Balance | Expense | Rate(1) | Balance | Expense | Rate(1) | Balance | Expense | Rate(1) | Balance | Expense | Rate(1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-earning cash and equivalents | $ | 15,679 | $ | 158 | 4.00 | % | $ | 17,131 | $ | 187 | 4.33 | % | $ | 20,699 | $ | 228 | 4.42 | % | $ | 18,539 | $ | 203 | 4.44 | % | $ | 16,131 | $ | 193 | 4.76 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Securities available for sale | 2,635 | 28 | 4.22 | % | 2,872 | 34 | 4.70 | % | 2,774 | 30 | 4.34 | % | 3,231 | 35 | 4.39 | % | 3,111 | 37 | 4.73 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loan receivables, including held for sale: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Credit cards | 93,389 | 5,297 | 22.50 | % | 92,176 | 5,255 | 22.62 | % | 91,460 | 5,076 | 22.26 | % | 93,241 | 5,055 | 21.99 | % | 94,356 | 5,209 | 21.96 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Consumer installment loans | 5,548 | 198 | 14.16 | % | 5,618 | 208 | 14.69 | % | 5,692 | 207 | 14.59 | % | 5,833 | 211 | 14.67 | % | 6,041 | 224 | 14.75 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial credit products | 1,962 | 52 | 10.52 | % | 2,006 | 46 | 9.10 | % | 1,981 | 43 | 8.71 | % | 1,842 | 45 | 9.91 | % | 1,953 | 45 | 9.17 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other | 83 | 1 | 4.78 | % | 85 | 1 | 4.67 | % | 103 | 2 | 7.79 | % | 105 | 1 | 3.86 | % | 126 | 2 | 6.31 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total loan receivables, including held for sale | 100,982 | 5,548 | 21.80 | % | 99,885 | 5,510 | 21.89 | % | 99,236 | 5,328 | 21.54 | % | 101,021 | 5,312 | 21.33 | % | 102,476 | 5,480 | 21.27 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total interest-earning assets | 119,296 | 5,734 | 19.07 | % | 119,888 | 5,731 | 18.97 | % | 122,709 | 5,586 | 18.26 | % | 122,791 | 5,550 | 18.33 | % | 121,718 | 5,710 | 18.66 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-interest-earning assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash and due from banks | 864 | 892 | 868 | 868 | 872 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for credit losses | (10,391) | (10,536) | (10,797) | (10,936) | (11,014) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other assets | 8,131 | 7,913 | 7,661 | 7,770 | 7,678 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total non-interest-earning assets | (1,396) | (1,731) | (2,268) | (2,298) | (2,464) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 117,900 | $ | 118,157 | $ | 120,441 | $ | 120,493 | $ | 119,254 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing deposit accounts | $ | 80,117 | $ | 781 | 3.87 | % | $ | 80,442 | $ | 812 | 4.00 | % | $ | 82,014 | $ | 855 | 4.18 | % | $ | 82,370 | $ | 882 | 4.34 | % | $ | 81,635 | $ | 917 | 4.47 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Borrowings of consolidated securitization entities | 8,032 | 104 | 5.14 | % | 7,768 | 105 | 5.36 | % | 7,926 | 104 | 5.26 | % | 8,191 | 104 | 5.15 | % | 7,868 | 104 | 5.26 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Senior and Subordinated unsecured notes | 6,765 | 88 | 5.16 | % | 7,209 | 94 | 5.17 | % | 8,269 | 106 | 5.14 | % | 7,850 | 100 | 5.17 | % | 7,618 | 97 | 5.07 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total interest-bearing liabilities | 94,914 | 973 | 4.07 | % | 95,419 | 1,011 | 4.20 | % | 98,209 | 1,065 | 4.35 | % | 98,411 | 1,086 | 4.48 | % | 97,121 | 1,118 | 4.58 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-interest-bearing liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-interest-bearing deposit accounts | 382 | 410 | 412 | 418 | 379 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other liabilities | 5,667 | 5,287 | 5,065 | 4,969 | 5,444 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total non-interest-bearing liabilities | 6,049 | 5,697 | 5,477 | 5,387 | 5,823 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities | 100,963 | 101,116 | 103,686 | 103,798 | 102,944 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total equity | 16,937 | 17,041 | 16,755 | 16,695 | 16,310 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities and equity | $ | 117,900 | $ | 118,157 | $ | 120,441 | $ | 120,493 | $ | 119,254 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 4,761 | $ | 4,720 | $ | 4,521 | $ | 4,464 | $ | 4,592 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate spread(2) | 15.00 | % | 14.76 | % | 13.91 | % | 13.86 | % | 14.08 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest margin(3) | 15.83 | % | 15.62 | % | 14.78 | % | 14.74 | % | 15.01 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (1) Average yields/rates are based on annualized total interest income/expense divided by average balances. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (2) Interest rate spread represents the difference between the yield on total interest-earning assets and the rate on total interest-bearing liabilities. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (3) Net interest margin represents annualized net interest income divided by average total interest-earning assets. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5
| SYNCHRONY FINANCIAL | |||||||||||||||||||||||||||||||||||
| AVERAGE BALANCES, NET INTEREST INCOME AND NET INTEREST MARGIN | |||||||||||||||||||||||||||||||||||
| (unaudited, $ in millions) | |||||||||||||||||||||||||||||||||||
| Twelve Months Ended Dec 31, 2025 | Twelve Months Ended Dec 31, 2024 | ||||||||||||||||||||||||||||||||||
| Interest | Average | Interest | Average | ||||||||||||||||||||||||||||||||
| Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||||||||||||||||||
| Balance | Expense | Rate(1) | Balance | Expense | Rate(1) | ||||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||||||||||||||
| Interest-earning cash and equivalents | $ | 18,002 | $ | 776 | 4.31 | % | $ | 17,294 | $ | 913 | 5.28 | % | |||||||||||||||||||||||
| Securities available for sale | 2,876 | 127 | 4.42 | % | 2,965 | 136 | 4.59 | % | |||||||||||||||||||||||||||
| Loan receivables, including held for sale: | |||||||||||||||||||||||||||||||||||
| Credit cards | 92,566 | 20,683 | 22.34 | % | 93,907 | 20,554 | 21.89 | % | |||||||||||||||||||||||||||
| Consumer installment loans | 5,672 | 824 | 14.53 | % | 5,744 | 854 | 14.87 | % | |||||||||||||||||||||||||||
| Commercial credit products | 1,948 | 186 | 9.55 | % | 1,956 | 179 | 9.15 | % | |||||||||||||||||||||||||||
| Other | 94 | 5 | 5.32 | % | 126 | 9 | 7.14 | % | |||||||||||||||||||||||||||
| Total loan receivables, including held for sale | 100,280 | 21,698 | 21.64 | % | 101,733 | 21,596 | 21.23 | % | |||||||||||||||||||||||||||
| Total interest-earning assets | 121,158 | 22,601 | 18.65 | % | 121,992 | 22,645 | 18.56 | % | |||||||||||||||||||||||||||
| Non-interest-earning assets: | |||||||||||||||||||||||||||||||||||
| Cash and due from banks | 873 | 887 | |||||||||||||||||||||||||||||||||
| Allowance for credit losses | (10,663) | (10,891) | |||||||||||||||||||||||||||||||||
| Other assets | 7,870 | 7,398 | |||||||||||||||||||||||||||||||||
| Total non-interest-earning assets | (1,920) | (2,606) | |||||||||||||||||||||||||||||||||
| Total assets | $ | 119,238 | $ | 119,386 | |||||||||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||
| Interest-bearing deposit accounts | $ | 81,228 | $ | 3,330 | 4.10 | % | $ | 82,268 | $ | 3,806 | 4.63 | % | |||||||||||||||||||||||
| Borrowings of consolidated securitization entities | 7,978 | 417 | 5.23 | % | 7,732 | 427 | 5.52 | % | |||||||||||||||||||||||||||
| Senior and subordinated unsecured notes | 7,519 | 388 | 5.16 | % | 8,082 | 401 | 4.96 | % | |||||||||||||||||||||||||||
| Total interest-bearing liabilities | 96,725 | 4,135 | 4.28 | % | 98,082 | 4,634 | 4.72 | % | |||||||||||||||||||||||||||
| Non-interest-bearing liabilities | |||||||||||||||||||||||||||||||||||
| Non-interest-bearing deposit accounts | 405 | 388 | |||||||||||||||||||||||||||||||||
| Other liabilities | 5,250 | 5,348 | |||||||||||||||||||||||||||||||||
| Total non-interest-bearing liabilities | 5,655 | 5,736 | |||||||||||||||||||||||||||||||||
| Total liabilities | 102,380 | 103,818 | |||||||||||||||||||||||||||||||||
| Equity | |||||||||||||||||||||||||||||||||||
| Total equity | 16,858 | 15,568 | |||||||||||||||||||||||||||||||||
| Total liabilities and equity | $ | 119,238 | $ | 119,386 | |||||||||||||||||||||||||||||||
| Net interest income | $ | 18,466 | $ | 18,011 | |||||||||||||||||||||||||||||||
Interest rate spread(2) | 14.38 | % | 13.84 | % | |||||||||||||||||||||||||||||||
Net interest margin(3) | 15.24 | % | 14.76 | % | |||||||||||||||||||||||||||||||
| (1) Average yields/rates are based on annualized total interest income/expense divided by average balances. | |||||||||||||||||||||||||||||||||||
| (2) Interest rate spread represents the difference between the yield on total interest-earning assets and the rate on total interest-bearing liabilities. | |||||||||||||||||||||||||||||||||||
| (3) Net interest margin represents annualized net interest income divided by average total interest-earning assets. | |||||||||||||||||||||||||||||||||||
6
| SYNCHRONY FINANCIAL | ||||||||||||||||||||||||||||||||||||||
| BALANCE SHEET STATISTICS | ||||||||||||||||||||||||||||||||||||||
| (unaudited, $ in millions, except per share statistics) | ||||||||||||||||||||||||||||||||||||||
| Quarter Ended | ||||||||||||||||||||||||||||||||||||||
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Dec 31, 2025 vs. Dec 31, 2024 | |||||||||||||||||||||||||||||||||
| BALANCE SHEET STATISTICS | ||||||||||||||||||||||||||||||||||||||
| Total common equity | $ | 15,544 | $ | 15,843 | $ | 15,730 | $ | 15,359 | $ | 15,358 | $ | 186 | 1.2 | % | ||||||||||||||||||||||||
| Total common equity as a % of total assets | 13.05 | % | 13.54 | % | 13.05 | % | 12.59 | % | 12.86 | % | 0.19 | % | ||||||||||||||||||||||||||
| Tangible assets | $ | 116,477 | $ | 114,801 | $ | 118,369 | $ | 119,905 | $ | 117,335 | $ | (858) | (0.7) | % | ||||||||||||||||||||||||
Tangible common equity(1) | $ | 12,926 | $ | 13,660 | $ | 13,594 | $ | 13,238 | $ | 13,230 | $ | (304) | (2.3) | % | ||||||||||||||||||||||||
Tangible common equity as a % of tangible assets(1) | 11.10 | % | 11.90 | % | 11.48 | % | 11.04 | % | 11.28 | % | (0.18) | % | ||||||||||||||||||||||||||
Tangible book value per share(2) | $ | 37.21 | $ | 37.93 | $ | 36.55 | $ | 34.79 | $ | 34.07 | $ | 3.14 | 9.2 | % | ||||||||||||||||||||||||
REGULATORY CAPITAL RATIOS(3)(4) | ||||||||||||||||||||||||||||||||||||||
| Basel III - CECL Transition | ||||||||||||||||||||||||||||||||||||||
Total risk-based capital ratio(5) | 15.8 | % | 16.9 | % | 16.9 | % | 16.5 | % | 16.5 | % | ||||||||||||||||||||||||||||
Tier 1 risk-based capital ratio(6) | 13.8 | % | 14.9 | % | 14.8 | % | 14.4 | % | 14.5 | % | ||||||||||||||||||||||||||||
Tier 1 leverage ratio(7) | 12.5 | % | 13.0 | % | 12.7 | % | 12.4 | % | 12.9 | % | ||||||||||||||||||||||||||||
| Common equity Tier 1 capital ratio | 12.6 | % | 13.7 | % | 13.6 | % | 13.2 | % | 13.3 | % | ||||||||||||||||||||||||||||
| (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) Tangible book value per share is a non-GAAP measure, calculated based on Tangible common equity divided by common shares outstanding. For corresponding reconciliation of this measure to a GAAP financial measure, see Reconciliation of Non-GAAP Measures and Calculations of Regulatory Measures. | ||||||||||||||||||||||||||||||||||||||
| (3) Regulatory capital ratios at December 31, 2025 are preliminary and therefore subject to change. | ||||||||||||||||||||||||||||||||||||||
| (4) Capital ratios reflect the phase-in of an estimate of CECL’s effect on regulatory capital over a three-year transitional period beginning in the first quarter of 2022 through 2024. Capital ratios for 2025 and 2024 reflect 100% and 75%, respectively, of the phase-in of CECL effects. | ||||||||||||||||||||||||||||||||||||||
| (5) Total risk-based capital ratio is the ratio of total risk-based capital divided by risk-weighted assets. | ||||||||||||||||||||||||||||||||||||||
| (6) Tier 1 risk-based capital ratio is the ratio of Tier 1 capital divided by risk-weighted assets. | ||||||||||||||||||||||||||||||||||||||
| (7) Tier 1 leverage ratio is the ratio of Tier 1 capital divided by total average assets, after certain adjustments. | ||||||||||||||||||||||||||||||||||||||
7
| SYNCHRONY FINANCIAL | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PLATFORM RESULTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (unaudited, unrounded, $ in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quarter Ended | Twelve Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | 4Q'25 vs. 4Q'24 | Dec 31 , 2025 | Dec 31, 2024 | YTD '25 vs. YTD '24 | |||||||||||||||||||||||||||||||||||||||||||||||||||
HOME & AUTO(1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase volume(2) | $ | 10,381 | $ | 11,061 | $ | 11,459 | $ | 9,446 | $ | 10,553 | $ | (172) | (1.6) | % | $ | 42,347 | $ | 44,509 | $ | (2,162) | (4.9) | % | |||||||||||||||||||||||||||||||||||||
| Period-end loan receivables | $ | 30,106 | $ | 30,295 | $ | 30,374 | $ | 30,254 | $ | 31,816 | $ | (1,710) | (5.4) | % | $ | 30,106 | $ | 31,816 | $ | (1,710) | (5.4) | % | |||||||||||||||||||||||||||||||||||||
| Average loan receivables, including held for sale | $ | 30,055 | $ | 30,260 | $ | 30,137 | $ | 30,810 | $ | 31,903 | $ | (1,848) | (5.8) | % | $ | 30,313 | $ | 32,089 | $ | (1,776) | (5.5) | % | |||||||||||||||||||||||||||||||||||||
Average active accounts (in thousands)(3) | 17,370 | 17,749 | 17,831 | 17,894 | 18,537 | (1,167) | (6.3) | % | 17,715 | 18,879 | (1,164) | (6.2) | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Interest and fees on loans | $ | 1,444 | $ | 1,443 | $ | 1,395 | $ | 1,402 | $ | 1,476 | $ | (32) | (2.2) | % | $ | 5,684 | $ | 5,736 | $ | (52) | (0.9) | % | |||||||||||||||||||||||||||||||||||||
| Other income | $ | 52 | $ | 54 | $ | 52 | $ | 56 | $ | 62 | $ | (10) | (16.1) | % | $ | 214 | $ | 186 | $ | 28 | 15.1 | % | |||||||||||||||||||||||||||||||||||||
| DIGITAL | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase volume(2) | $ | 16,206 | $ | 14,044 | $ | 13,647 | $ | 12,479 | $ | 15,317 | $ | 889 | 5.8 | % | $ | 56,376 | $ | 54,700 | $ | 1,676 | 3.1 | % | |||||||||||||||||||||||||||||||||||||
| Period-end loan receivables | $ | 30,057 | $ | 28,179 | $ | 27,786 | $ | 27,765 | $ | 29,347 | $ | 710 | 2.4 | % | $ | 30,057 | $ | 29,347 | $ | 710 | 2.4 | % | |||||||||||||||||||||||||||||||||||||
| Average loan receivables, including held for sale | $ | 28,676 | $ | 27,880 | $ | 27,571 | $ | 28,216 | $ | 28,158 | $ | 518 | 1.8 | % | $ | 28,086 | $ | 27,872 | $ | 214 | 0.8 | % | |||||||||||||||||||||||||||||||||||||
Average active accounts (in thousands)(3) | 21,352 | 20,680 | 20,368 | 20,711 | 20,810 | 542 | 2.6 | % | 20,804 | 20,986 | (182) | (0.9) | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Interest and fees on loans | $ | 1,663 | $ | 1,631 | $ | 1,576 | $ | 1,544 | $ | 1,582 | $ | 81 | 5.1 | % | $ | 6,414 | $ | 6,286 | $ | 128 | 2.0 | % | |||||||||||||||||||||||||||||||||||||
| Other income | $ | (6) | $ | (2) | $ | — | $ | 9 | $ | (6) | $ | — | — | % | $ | 1 | $ | 4 | $ | (3) | (75.0) | % | |||||||||||||||||||||||||||||||||||||
| DIVERSIFIED & VALUE | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase volume(2) | $ | 17,462 | $ | 15,417 | $ | 15,393 | $ | 13,732 | $ | 16,711 | $ | 751 | 4.5 | % | $ | 62,004 | $ | 61,059 | $ | 945 | 1.5 | % | |||||||||||||||||||||||||||||||||||||
| Period-end loan receivables | $ | 21,236 | $ | 19,500 | $ | 19,510 | $ | 19,436 | $ | 20,867 | $ | 369 | 1.8 | % | $ | 21,236 | $ | 20,867 | $ | 369 | 1.8 | % | |||||||||||||||||||||||||||||||||||||
| Average loan receivables, including held for sale | $ | 19,978 | $ | 19,440 | $ | 19,338 | $ | 19,670 | $ | 19,793 | $ | 185 | 0.9 | % | $ | 19,607 | $ | 19,540 | $ | 67 | 0.3 | % | |||||||||||||||||||||||||||||||||||||
Average active accounts (in thousands)(3) | 20,170 | 19,470 | 19,471 | 20,114 | 20,253 | (83) | (0.4) | % | 19,894 | 20,437 | (543) | (2.7) | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Interest and fees on loans | $ | 1,200 | $ | 1,192 | $ | 1,159 | $ | 1,178 | $ | 1,206 | $ | (6) | (0.5) | % | $ | 4,729 | $ | 4,794 | $ | (65) | (1.4) | % | |||||||||||||||||||||||||||||||||||||
| Other income | $ | (13) | $ | (3) | $ | (3) | $ | — | $ | (9) | $ | (4) | 44.4 | % | $ | (19) | $ | (59) | $ | 40 | (67.8) | % | |||||||||||||||||||||||||||||||||||||
| HEALTH & WELLNESS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase volume(2) | $ | 3,897 | $ | 3,976 | $ | 4,007 | $ | 3,774 | $ | 3,742 | $ | 155 | 4.1 | % | $ | 15,654 | $ | 15,678 | $ | (24) | (0.2) | % | |||||||||||||||||||||||||||||||||||||
| Period-end loan receivables | $ | 15,545 | $ | 15,447 | $ | 15,309 | $ | 15,193 | $ | 15,436 | $ | 109 | 0.7 | % | $ | 15,545 | $ | 15,436 | $ | 109 | 0.7 | % | |||||||||||||||||||||||||||||||||||||
| Average loan receivables, including held for sale | $ | 15,499 | $ | 15,347 | $ | 15,215 | $ | 15,280 | $ | 15,448 | $ | 51 | 0.3 | % | $ | 15,336 | $ | 15,143 | $ | 193 | 1.3 | % | |||||||||||||||||||||||||||||||||||||
Average active accounts (in thousands)(3) | 7,770 | 7,730 | 7,697 | 7,776 | 7,836 | (66) | (0.8) | % | 7,750 | 7,743 | 7 | 0.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Interest and fees on loans | $ | 979 | $ | 967 | $ | 923 | $ | 914 | $ | 935 | $ | 44 | 4.7 | % | $ | 3,783 | $ | 3,671 | $ | 112 | 3.1 | % | |||||||||||||||||||||||||||||||||||||
| Other income | $ | 79 | $ | 73 | $ | 66 | $ | 75 | $ | 72 | $ | 7 | 9.7 | % | $ | 293 | $ | 254 | $ | 39 | 15.4 | % | |||||||||||||||||||||||||||||||||||||
| LIFESTYLE | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase volume(2) | $ | 1,522 | $ | 1,371 | $ | 1,432 | $ | 1,168 | $ | 1,480 | $ | 42 | 2.8 | % | $ | 5,493 | $ | 5,660 | $ | (167) | (3.0) | % | |||||||||||||||||||||||||||||||||||||
| Period-end loan receivables | $ | 6,771 | $ | 6,644 | $ | 6,673 | $ | 6,636 | $ | 6,914 | $ | (143) | (2.1) | % | $ | 6,771 | $ | 6,914 | $ | (143) | (2.1) | % | |||||||||||||||||||||||||||||||||||||
| Average loan receivables, including held for sale | $ | 6,657 | $ | 6,652 | $ | 6,646 | $ | 6,716 | $ | 6,818 | $ | (161) | (2.4) | % | $ | 6,668 | $ | 6,749 | $ | (81) | (1.2) | % | |||||||||||||||||||||||||||||||||||||
Average active accounts (in thousands)(3) | 2,589 | 2,543 | 2,531 | 2,651 | 2,688 | (99) | (3.7) | % | 2,588 | 2,674 | (86) | (3.2) | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Interest and fees on loans | $ | 265 | $ | 264 | $ | 261 | $ | 261 | $ | 268 | $ | (3) | (1.1) | % | $ | 1,051 | $ | 1,051 | $ | — | — | % | |||||||||||||||||||||||||||||||||||||
| Other income | $ | 11 | $ | 11 | $ | 9 | $ | 10 | $ | 7 | $ | 4 | 57.1 | % | $ | 41 | $ | 30 | $ | 11 | 36.7 | % | |||||||||||||||||||||||||||||||||||||
CORP, OTHER(1)(5) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase volume(2) | $ | 8 | $ | 136 | $ | 146 | $ | 121 | $ | 152 | $ | (144) | (94.7) | % | $ | 411 | $ | 567 | $ | (156) | (27.5) | % | |||||||||||||||||||||||||||||||||||||
Period-end loan receivables(4) | $ | 93 | $ | 113 | $ | 124 | $ | 324 | $ | 341 | $ | (248) | (72.7) | % | $ | 93 | $ | 341 | $ | (248) | (72.7) | % | |||||||||||||||||||||||||||||||||||||
| Average loan receivables, including held for sale | $ | 117 | $ | 306 | $ | 329 | $ | 329 | $ | 356 | $ | (239) | (67.1) | % | $ | 270 | $ | 340 | $ | (70) | (20.6) | % | |||||||||||||||||||||||||||||||||||||
Average active accounts (in thousands)(3) | 53 | 146 | 152 | 169 | 175 | (122) | (69.7) | % | 125 | 185 | (60) | (32.4) | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Interest and fees on loans | $ | (3) | $ | 13 | $ | 14 | $ | 13 | $ | 13 | $ | (16) | (123.1) | % | $ | 37 | $ | 58 | $ | (21) | (36.2) | % | |||||||||||||||||||||||||||||||||||||
| Other income | $ | 3 | $ | (6) | $ | (6) | $ | (1) | $ | 2 | $ | 1 | 50.0 | % | $ | (10) | $ | 1,106 | $ | (1,116) | (100.9) | % | |||||||||||||||||||||||||||||||||||||
TOTAL SYF(5) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase volume(2) | $ | 49,476 | $ | 46,005 | $ | 46,084 | $ | 40,720 | $ | 47,955 | $ | 1,521 | 3.2 | % | $ | 182,285 | $ | 182,173 | $ | 112 | 0.1 | % | |||||||||||||||||||||||||||||||||||||
| Period-end loan receivables | $ | 103,808 | $ | 100,178 | $ | 99,776 | $ | 99,608 | $ | 104,721 | $ | (913) | (0.9) | % | $ | 103,808 | $ | 104,721 | $ | (913) | (0.9) | % | |||||||||||||||||||||||||||||||||||||
| Average loan receivables, including held for sale | $ | 100,982 | $ | 99,885 | $ | 99,236 | $ | 101,021 | $ | 102,476 | $ | (1,494) | (1.5) | % | $ | 100,280 | $ | 101,733 | $ | (1,453) | (1.4) | % | |||||||||||||||||||||||||||||||||||||
Average active accounts (in thousands)(3) | 69,304 | 68,318 | 68,050 | 69,315 | 70,299 | (995) | (1.4) | % | 68,876 | 70,904 | (2,028) | (2.9) | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Interest and fees on loans | $ | 5,548 | $ | 5,510 | $ | 5,328 | $ | 5,312 | $ | 5,480 | $ | 68 | 1.2 | % | $ | 21,698 | $ | 21,596 | $ | 102 | 0.5 | % | |||||||||||||||||||||||||||||||||||||
| Other income | $ | 126 | $ | 127 | $ | 118 | $ | 149 | $ | 128 | $ | (2) | (1.6) | % | $ | 520 | $ | 1,521 | $ | (1,001) | (65.8) | % | |||||||||||||||||||||||||||||||||||||
| (1) In June 2025, we entered into an agreement to sell $0.2 billion of loan receivables associated with a Home & Auto program agreement. In connection with this agreement, revenue activities for the portfolio were no longer managed within our Home & Auto sales platform, and the portfolio was sold in October 2025. All metrics for the portfolio previously reported within our Home & Auto sales platform are now reported within Corp, Other. We have recast all prior-period reported metrics for our Home & Auto sales platform and Corp, Other to conform to the current-period presentation. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (2) 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. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (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. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (4) Reflects the reclassification of $0.2 billion to loan receivables held for sale in 2Q 2025. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (5) Includes activity and balances (except for Period-end loan receivables) associated with a Home & Auto portfolio which was sold in 4Q 2025. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8
| SYNCHRONY FINANCIAL | |||||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES AND CALCULATIONS OF REGULATORY MEASURES(1) | |||||||||||||||||||||||||||||
| (unaudited, $ in millions, except per share statistics) | |||||||||||||||||||||||||||||
| Quarter Ended | |||||||||||||||||||||||||||||
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | |||||||||||||||||||||||||
COMMON EQUITY AND REGULATORY CAPITAL MEASURES(2) | |||||||||||||||||||||||||||||
| GAAP Total equity | $ | 16,766 | $ | 17,065 | $ | 16,952 | $ | 16,581 | $ | 16,580 | |||||||||||||||||||
| Less: Preferred stock | (1,222) | (1,222) | (1,222) | (1,222) | (1,222) | ||||||||||||||||||||||||
| Less: Goodwill | (1,363) | (1,274) | (1,274) | (1,274) | (1,274) | ||||||||||||||||||||||||
| Less: Intangible assets, net | (1,255) | (909) | (862) | (847) | (854) | ||||||||||||||||||||||||
| Tangible common equity | $ | 12,926 | $ | 13,660 | $ | 13,594 | $ | 13,238 | $ | 13,230 | |||||||||||||||||||
| Add: CECL transition amount | — | — | — | — | 573 | ||||||||||||||||||||||||
| Adjustments for certain deferred tax liabilities and certain items in accumulated comprehensive income (loss) | 316 | 250 | 209 | 208 | 214 | ||||||||||||||||||||||||
| Common equity Tier 1 | $ | 13,242 | $ | 13,910 | $ | 13,803 | $ | 13,446 | $ | 14,017 | |||||||||||||||||||
| Preferred stock | 1,222 | 1,222 | 1,222 | 1,222 | 1,222 | ||||||||||||||||||||||||
| Tier 1 capital | $ | 14,464 | $ | 15,132 | $ | 15,025 | $ | 14,668 | $ | 15,239 | |||||||||||||||||||
| Add: Subordinated debt | 742 | 742 | 742 | 742 | 741 | ||||||||||||||||||||||||
| Add: Allowance for credit losses includible in risk-based capital | 1,426 | 1,386 | 1,386 | 1,388 | 1,427 | ||||||||||||||||||||||||
| Total Risk-based capital | $ | 16,632 | $ | 17,260 | $ | 17,153 | $ | 16,798 | $ | 17,407 | |||||||||||||||||||
ASSET MEASURES(2) | |||||||||||||||||||||||||||||
| Total average assets | $ | 117,900 | $ | 118,157 | $ | 120,441 | $ | 120,493 | $ | 119,254 | |||||||||||||||||||
| Adjustments for: | |||||||||||||||||||||||||||||
| Add: CECL transition amount | — | — | — | — | 573 | ||||||||||||||||||||||||
| Less: Disallowed goodwill and other disallowed intangible assets (net of related deferred tax liabilities) and other | (2,291) | (1,917) | (1,913) | (1,895) | (1,904) | ||||||||||||||||||||||||
| Total assets for leverage purposes | $ | 115,609 | $ | 116,240 | $ | 118,528 | $ | 118,598 | $ | 117,923 | |||||||||||||||||||
| Risk-weighted assets | $ | 105,029 | $ | 101,884 | $ | 101,716 | $ | 101,625 | $ | 105,417 | |||||||||||||||||||
| CECL FULLY PHASED-IN CAPITAL MEASURES | |||||||||||||||||||||||||||||
| Tier 1 capital | $ | 14,464 | $ | 15,132 | $ | 15,025 | $ | 14,668 | $ | 15,239 | |||||||||||||||||||
| Less: CECL transition adjustment | — | — | — | — | (573) | ||||||||||||||||||||||||
| Tier 1 capital (CECL fully phased-in) | $ | 14,464 | $ | 15,132 | $ | 15,025 | $ | 14,668 | $ | 14,666 | |||||||||||||||||||
| Add: Allowance for credit losses | 10,442 | 10,373 | 10,564 | 10,828 | 10,929 | ||||||||||||||||||||||||
| Tier 1 capital (CECL fully phased-in) + Reserves for credit losses | $ | 24,906 | $ | 25,505 | $ | 25,589 | $ | 25,496 | $ | 25,595 | |||||||||||||||||||
| Risk-weighted assets | $ | 105,029 | $ | 101,884 | $ | 101,716 | $ | 101,625 | $ | 105,417 | |||||||||||||||||||
| Less: CECL transition adjustment | — | — | — | — | (290) | ||||||||||||||||||||||||
| Risk-weighted assets (CECL fully phased-in) | $ | 105,029 | $ | 101,884 | $ | 101,716 | $ | 101,625 | $ | 105,127 | |||||||||||||||||||
| TANGIBLE BOOK VALUE PER SHARE | |||||||||||||||||||||||||||||
| Book value per share | $ | 44.74 | $ | 44.00 | $ | 42.30 | $ | 40.37 | $ | 39.55 | |||||||||||||||||||
| Less: Goodwill | (3.92) | (3.55) | (3.43) | (3.35) | (3.28) | ||||||||||||||||||||||||
| Less: Intangible assets, net | (3.61) | (2.52) | (2.32) | (2.23) | (2.20) | ||||||||||||||||||||||||
| Tangible book value per share | $ | 37.21 | $ | 37.93 | $ | 36.55 | $ | 34.79 | $ | 34.07 | |||||||||||||||||||
| (1) Regulatory measures at December 31, 2025 are preliminary and therefore subject to change. | |||||||||||||||||||||||||||||
| (2) Capital ratios reflect the phase-in of an estimate of CECL’s effect on regulatory capital over a three-year transitional period beginning in the first quarter of 2022 through 2024. Capital ratios for 2025 and 2024 reflect 100% and 75%, respectively, of the phase-in of CECL effects. | |||||||||||||||||||||||||||||
9
January 27, 2026 FOURTH QUARTER 2025 FINANCIAL RESULTS Exhibit 99.3
2 Disclaimers Cautionary Statement Regarding Forward-Looking Statements The following slides are part of a presentation by Synchrony Financial in connection with reporting quarterly financial results and should be read in conjunction with the earnings release and financial supplement included as exhibits to our Current Report on Form 8-K filed today and available on our website (www.investors.synchrony.com) and the SEC's website (www.sec.gov). All references to net earnings and net income are intended to have the same meaning. All comparisons are for the fourth quarter of 2025 compared to the fourth quarter of 2024, unless otherwise noted. This presentation contains certain forward-looking statements as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the "safe harbor" created by those sections. Forward-looking statements may be identified by words such as "expects," "intends," "anticipates," "plans," "believes," "seeks," "targets," "outlook," "estimates," "will," "should," "may," “aim,” “focus,” “goal,” “confident,” “trajectory,” "priorities," "designed," "consider" or words of similar meaning, but these words are not the exclusive means of identifying forward-looking statements. Forward-looking statements are based on management's current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, actual results could differ materially from those indicated in these forward-looking statements. Factors that could cause actual results to differ materially include global political, economic, business, competitive, market, regulatory and other factors and risks, such as: the impact of macroeconomic conditions, including factors impacting consumer confidence and economic growth in the United States, such as inflation, interest rates, tariffs (including retaliatory tariffs) and an economic downturn or recession, and whether industry trends we have identified develop as anticipated; the impact of changes made or influenced by the U.S. presidential administration and Congress on fiscal, monetary and regulatory policy, including with respect to constraints on the pricing of our credit products; the impact of the federal government shutdown in October and November 2025; retaining existing partners and attracting new partners, concentration of our revenue in a small number of partners, and promotion and support of our products by our partners; cyber-attacks or other security incidents or breaches; disruptions in the operations of our and our outsourced partners' computer systems and data centers; the financial performance of our partners; product, pricing, and policy changes related to the Consumer Financial Protection Bureau’s (the “CFPB”) final rule on credit card late fees, which was vacated in April 2025; the sufficiency of our allowance for credit losses and the accuracy of the assumptions or estimates used in preparing our financial statements, including those related to the CECL accounting guidance; higher borrowing costs and adverse financial market conditions impacting our funding and liquidity, and any reduction in our credit ratings; our ability to grow our deposits in the future; damage to our reputation; our ability to securitize our loan receivables, occurrence of an early amortization of our securitization facilities, loss of the right to service or subservice our securitized loan receivables, and lower payment rates on our securitized loan receivables; changes in benchmark or market interest rates; effectiveness of our risk management processes and procedures, reliance on models which may be inaccurate or misinterpreted, and our ability to manage our credit risk; our ability to offset increases in our costs in retailer share arrangements; competition in the consumer finance industry; our concentration in the U.S. consumer credit market and susceptibility to market fluctuations and legislative and regulatory developments; our ability to successfully develop and commercialize new or enhanced products and services; our ability to realize the value of acquisitions, dispositions and strategic investments; reductions in interchange fees; fraudulent activity; failure of third-parties to provide various services that are important to our operations; international risks and compliance and regulatory risks and costs associated with international operations; alleged infringement of intellectual property rights of others and our ability to protect our intellectual property; litigation, regulatory actions and compliance issues; our ability to attract, retain and motivate key officers and employees; tax legislation initiatives or challenges to our tax positions and/or interpretations, and state sales tax rules and regulations; regulation, supervision, examination and enforcement of our business by governmental authorities, the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act and other legislative and regulatory developments and the impact of the CFPB’s regulation of our business, including new requirements and constraints the Company and the Bank are or will become subject to as a result of having $100 billion or more in total assets; impact of capital adequacy rules and liquidity requirements; restrictions that limit our ability to pay dividends and repurchase our common stock, and restrictions that limit the Bank’s ability to pay dividends to us; regulations relating to privacy, information security and data protection; use of third-party vendors and ongoing third-party business relationships; and failure to comply with anti-money laundering and anti-terrorism financing laws. For the reasons described above, we caution you against relying on any forward-looking statements, which should also be read in conjunction with the other cautionary statements that are included elsewhere in this presentation and in our public filings, including under the headings “Risk Factors Relating to Our Business” and “Risk Factors Relating to Regulation” in the Company's most recent Annual Report on Form 10-K. You should not consider any list of such factors to be an exhaustive statement of all the risks, uncertainties, or potentially inaccurate assumptions that could cause our current expectations or beliefs to change. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update or revise any forward-looking statement, including the 2026 outlook on slide 11 of this presentation, to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as otherwise may be required by law.
3 3.0% 2025 Year in Review $3.5BN Grow & win new partners New partner deals +120% Accounts provisioned for digital wallets 45+ Partner renewals $182BN purchase volume 500+ 17% Increase in purchase volume via Synchrony Marketplace, app, and website Partner locations thousand Capital returned ROA ROTCE (1) Net earnings $3.3BN Driving value for our stakeholders Diversify programs, products & markets Deliver best-in-class customer experiences Generate strong financial results 30+ ~20MM New accounts originated Book Value per share 13% / 9% growth (1) Return on tangible common equity (“ROTCE”) represents net earnings available to common stockholders as a percentage of average tangible common equity. Tangible common equity ("TCE") and tangible book value (“TBV”) per share are non-GAAP measures. For corresponding reconciliation of these measures to a GAAP financial measure, see Non-GAAP Reconciliation in appendix. 25.8% TBV per share(1)
4 Delivering consistent returns over time Prime & Super Prime/EOP(1)(2) 63% 72% 72% 74% 74% 72% 78% 73% 74% 74% RSA/Purchase Volume(2) 1.09% 1.83% 2.53% 2.41% 2.23% 2.58% 2.73% 1.98% 1.87% 2.20% LONG-TERM TARGETS: ~2.5+% ROA ~28+% ROTCE NCOs/ALR(2) RAR(4) RSA/ALR(2) (1) Classification of Prime & Super Prime refers to VantageScore credit scores of 651 or higher for 2019-2025 and FICO scores of 661 or higher for periods prior to 2019 . (2) RSA/ALR refers to Retailer share arrangements as a percentage of Average loan receivables; NCO/ALR refers to Net charge-offs as a percentage of Average loan receivables; Prime & Super Prime/EOP refers to Prime & Super Prime Loan receivables as a percentage of total period-end Loan receivables; RSA/Purchase volume refers to Retailer share arrangements as a percentage of Purchase volume. (3) Data on a managed-basis for 2009. See non-GAAP reconciliation in appendix. (4) Risk-adjusted return (“RAR”) represents Total interest income (Interest and fees on loans plus Interest on cash and debt securities) less interest expense, RSA and NCOs, stated as a percentage of average loan receivables. CARD Act Took Effect Credit Normalization COVID-19 Pandemic Rising Interest Rate & Credit Loss Environment GFC (3)
5 Net interest margin 15.83% PY: 15.01% Net charge-offs 5.37% PY: 6.45% Efficiency ratio 36.9% PY: 33.3% Diluted earnings per share $2.04* PY: $1.91 Return on assets 2.5% PY: 2.6% Fourth quarter in review (1) Consumer only, including in-partner and out-of-partner activity. (2) Unless otherwise indicated, references to Loan receivables do not include Loan receivables held for sale. (3) Credit card or installment loan accounts on which there has been a purchase, payment or outstanding balance in the current month. (4) 2024 CET1 ratios are presented on a CECL transitional basis. (5) This is a non-GAAP measure. See Non-GAAP reconciliation in appendix. Growth Results Capital & Shareholder Value Loan receivables2 (1)% Dual Card / Co-Brand1: $34.9bn, +20% Book value per share Tangible book value per share5 Average active accounts3 (1)% Common Equity Tier 1 (CET1) capital ratio4 Capital returned *Includes ~$0.14 restructuring charge Purchase volume +3% Dual Card / Co-Brand1: $24.7bn, +16%
6 (1) Percentages calculated from amounts presented in millions in the financial supplement. (2) All Home & Auto metrics have been recast to remove amounts associated with a Home & Auto program agreement sold in October 2025. See footnotes in financial supplement for additional information. Financial results Results ($mm, except per share statistics) By Platform ($bn) 4Q'25 4Q'24 B / (W) Interest income $5,734 $5,710 —% Interest expense 973 1,118 13% Net interest income 4,761 4,592 4% Retailer share arrangements (RSA) (1,094) (919) (19)% Other income 126 128 (2)% Net revenue 3,793 3,801 —% Provision for credit losses 1,442 1,561 8% Other expense 1,399 1,267 (10)% Pre-tax earnings 952 973 (2)% Provision for income taxes 201 199 (1)% Net earnings 751 774 (3)% Preferred dividends 21 21 —% Net earnings available to common stockholders $730 $753 (3)% Diluted earnings per share $2.04 $1.91 7% 4Q'25 4Q'24 B / (W)1 Home & Auto2 Loan receivables $30.1 $31.8 (5)% Purchase volume $10.4 $10.6 (2)% Interest and fees on loans $1.4 $1.5 (2)% Digital Loan receivables $30.1 $29.3 2% Purchase volume $16.2 $15.3 6% Interest and fees on loans $1.7 $1.6 5% Diversified & Value Loan receivables $21.2 $20.9 2% Purchase volume $17.5 $16.7 4% Interest and fees on loans $1.2 $1.2 —% Health & Wellness Loan receivables $15.5 $15.4 1% Purchase volume $3.9 $3.7 4% Interest and fees on loans $1.0 $0.9 5% Lifestyle Loan receivables $6.8 $6.9 (2)% Purchase volume $1.5 $1.5 3% Interest and fees on loans $0.3 $0.3 (1)%4Q'25 diluted earnings per share includes ~$0.14 restructuring charge
7 (1) Product, Pricing, and Policy Changes (or "PPPCs"). (2) Customer payments received during the period divided by beginning of period loan receivables, including Loan receivables held for sale. (3) Excludes portfolios sold in 2019 and 2022. • Net revenue flat to prior year – Net interest income increased 4%, or $169 million ▪ Loan receivables yield of 21.80%, up 53 bps primarily driven by the impact of our PPPCs1, partially offset by lower benchmark rates and lower late fee incidence ▪ Lower benchmark rates primarily drove reductions in Interest- bearing liabilities cost of 51 bps to 4.07% and liquidity portfolio yield of 73 bps to 4.03% – Retailer share arrangements increased 19%, reflecting program performance which included lower Net charge-offs and the impact of our PPPCs • Net interest margin of 15.83% increased 82bps – Reflects higher Loan receivables yield and lower liabilities cost, partially offset by liquidity portfolio yield – Loan receivables mix as a percent of Interest-earning assets of 84.65% increased 46bps • Payment rate2 of 16.3% up approximately 45bps vs. 4Q'24 and up approximately 155bps vs. pre-pandemic 5-year historical average ('15-'19)3 – The higher payment rate reflects the impact of our previous credit actions Net revenue Results ($mm) Highlights Other income Net interest income RSA (2)% +4% (19)% 4Q'24 Net interest margin 15.01% Loan receivables yield +0.44 % Interest-bearing liabilities cost +0.41 % Liquidity portfolio yield (0.11)% Mix of Interest-earning assets +0.08 % 4Q'25 Net interest margin 15.83% Net interest margin 4Q'24 4Q'25 B / (W) Net revenue $3,801 $3,793 —%
8 (1) Other expense divided by sum of Net interest income, plus Other income, less Retailer share arrangements. 4Q'24 4Q'25 B / (W) Other expense $1,267 $1,399 (10)% Other expense Marketing and business dev Professional fees Results ($mm) Highlights Employee costs (1)% +2% (20)% Information processing (15)% Other (4)% Efficiency ratio1 • Other expense increased 10%, or $132 million – Increase primarily driven by Employee costs and technology investments – Employee costs increase primarily attributable to $67 million of restructuring costs related to a voluntary early retirement program, as well as a shift in headcount mix – Information processing increase driven by costs related to technology investments • Efficiency ratio 36.9% vs. 33.3% prior year – Includes an approximate 180bps impact related to restructuring costs in 4Q'25 ~180bps lower excluding restructuring
9 • Provision for credit losses decreased 8%, or $119 million, driven by lower Net charge-offs of $294 million partially offset by a reserve build of $76 million versus a $100 million reserve release in the prior year (1) Unless otherwise indicated, references to Loan receivables do not include Loan receivables held for sale. (2) Excludes reserves for credit exposures primarily related to purchase commitments for loan portfolio acquisitions. Highlights Credit 30+ days past due $mm, % of period-end loan receivables 90+ days past due $mm, % of period-end loan receivables Net charge-offs $mm, annualized as % of average loan receivables, including held for sale Allowance for credit losses2 $mm, % of period-end loan receivables Credit trends1
10 4Q'24 CET1% 13.3 % Net earnings +3.4 % Share repurchases (2.8)% Common and preferred dividends (0.5)% Risk-weighted asset changes — % CECL transition provisions (0.5)% Other activity, net (0.3)% 4Q'25 CET1% 12.6 % Funding, capital and liquidity Funding and liquidity ($bn) Common Equity Tier 1 (CET1) ratio1 (1) Ratios reflect the phase-in of an estimate of CECL's effect on regulatory capital over a three-year transitional period beginning in the first quarter of 2022, with effects fully phased in beginning in 1Q’25. 2024 CET1, Tier 1 and Total Capital ratios are presented on a transition basis and reflect 75% of the phase-in of CECL effects. (2) Sum of “Tier 1 Capital” and “Allowance for Credit Losses,” divided by “Total Risk-Weighted Assets,” adjusted to also reflect fully-phased in impact of CECL for all periods. This ratio is a non-GAAP measure. See Non-GAAP reconciliation in appendix. Unsecured Secured Deposits 7% 9% 84% Capital ratios1 CET1 capital ratio Tier 1 capital ratio Total capital ratio Tier 1 capital + credit loss reserve ratio2 Liquid assets $17.2 $16.6 % of total assets 14.4% 13.9% 4Q'24 4Q'25 % total Total funding $97.5 $96.3 100%
11 2026 Outlook (comments and trends in comparison to 2025, except where noted) Commentary • Includes significant investment in growth-related initiatives (Walmart/OnePay, Lowes commercial co-brand credit card acquisition, Versatile Credit, increased strategic initiatives spending), which will impact loan yield, provision for credit losses, other income and other expenses • Growth in purchase volume and average active accounts; payment rate to remain elevated • Net interest income growth, reflecting building impact of PPPCs on I&F and lower funding liabilities costs, partially offset by lower late fee incidence and new account acceleration • RSA / Average loan receivables increasing, reflecting program performance; expected to stay within target 4.0% - 4.5% range • Other expense growth in line with receivables, ex-$98mm notable items in FY25 U/E Rate (YE’26) GDP Growth (FY’26) Fed Funds (YE’26) Deposit Betas (FY’26) 4.8% 2.0% 3.25% ~65% • No regulatory or legislative changes • Stable macroeconomic environment • No significant reduction in inflation rates • No additional modifications to PPPCs • No additional broad-based credit refinements Baseline assumptions (excluding impacts of qualitative overlays) Mid-single digit Ending loan receivables growth $9.10 to $9.50 Earnings per diluted share ~5.5 – 6.0% Net charge-off rate
13 The following table sets forth transaction related activity and other notable items incurred during 4Q'25 and 4Q'24. Transaction related activity and other notable items - 4Q $ in millions Quarter Ended December 31 2025 2024 Transaction related activity Provision for credit losses - transaction related: Loan portfolio acquisition $(1) $— Total $(1) $— Other expense - transaction related: Versatile Credit acquisition $2 $— Total $2 $— Other income - transaction related: Loan portfolio disposition $4 $— Total $4 $— Notable items Notable Other expense items: Restructuring - Voluntary early retirement program $67 $— Adjustment for India Code on Wages 3 — Preparatory expenses related to Late fee rule change — 8 Total $70 $8
14 The following table sets forth transaction related activity and other notable items incurred during the periods indicated below. Transaction related activity and other notable items - 2025 $ in millions 1Q 2Q 3Q 4Q 2025 2024 Transaction related activity Provision for credit losses - transaction related: Loan portfolio acquisition $5 $— $45 $(1) $49 $— Loan portfolio disposition — (12) — — (12) — Ally Lending acquisition — — — — — 180 Total $5 $(12) $45 $(1) $37 $180 Other expense - transaction related: Versatile Credit acquisition $— $— $— $2 $2 $— Pets Best indirect sale-related expenses — — — — — 3 Total $— $— $— $2 $2 $3 Other income - transaction related: Loan portfolio disposition $— $— $— $4 $4 $— Pets Best gain on sale — — — — — 1,069 Total $— $— $— $4 $4 $1,069 Notable items Notable Other income items: Gain related to Visa B-1 share exchange $— $— $— $— $— $51 Total $— $— $— $— $— $51 Notable Other expense items: Restructuring - Voluntary early retirement program $— $— $— $67 $67 $— Charitable contribution 15 — — — 15 — Ally Lending restructuring charge 12 (2) — — 10 — Adjustment for India Code on Wages — — — 3 3 — Preparatory expenses related to Late Fee rule change 1 — — — 1 49 Total $28 $(2) $— $70 $96 $49
15 The following table sets forth a reconciliation between GAAP results and non-GAAP adjusted results. Non-GAAP reconciliation 4Q'25 3Q'25 2Q'25 1Q'25 4Q'24 Tangible common equity: GAAP Total equity $16,766 $17,065 $16,952 $16,581 $16,580 Less: Preferred stock (1,222) (1,222) (1,222) (1,222) (1,222) Less: Goodwill (1,363) (1,274) (1,274) (1,274) (1,274) Less: Intangible assets, net (1,255) (909) (862) (847) (854) Tangible common equity $12,926 $13,660 $13,594 $13,238 $13,230 Tangible book value per share: Book value per share $44.74 $44.00 $42.30 $40.37 $39.55 Less: Goodwill (3.92) (3.55) (3.43) (3.35) (3.28) Less: Intangible assets, net (3.61) (2.52) (2.32) (2.23) (2.20) Tangible book value per share $37.21 $37.93 $36.55 $34.79 $34.07 $ in millions, except per share data
16 $ in millions Non-GAAP reconciliation (continued) At December 31 2025 2024 Tier 1 Capital $14,464 $15,239 Less: CECL transition adjustment — (573) Tier 1 capital (CECL fully phased-in) $14,464 $14,666 Add: Allowance for credit losses 10,442 10,929 Tier 1 capital (CECL fully phased-in) plus Reserves for credit losses $24,906 $25,595 Risk-weighted assets $105,029 $105,417 Less: CECL transition adjustment — (290) Risk-weighted assets (CECL fully phased-in) $105,029 $105,127 The following table sets forth the components of our Tier 1 Capital + Reserves ratio for the periods indicated below. (1) Amounts at December 31, 2025 are preliminary and therefore subject to change. 1
17 Non-GAAP reconciliation (continued) The following table sets forth a reconciliation between GAAP results and non-GAAP managed-basis results for 2009. $ in millions, except per share data Year Ended December 31, 2009 Net charge-offs as a % of average loan receivables, including held for sale: GAAP 11.26 % Securitization adjustments (0.59) % Managed Basis 10.67 % Net interest income as a % of average loan receivables, including held for sale: GAAP 16.21 % Securitization adjustments 1.44 % Managed Basis 17.65 % Retailer share arrangements as a % of average loan receivables, including held for sale: GAAP 3.40 % Securitization adjustments (1.80)% Managed Basis 1.60 % Average loan receivables GAAP $23,485 Securitization adjustments 23,181 Managed Basis $46,666 Period-end loan receivables GAAP $22,912 Securitization adjustments 23,964 Managed Basis $46,876
Exhibit 99.4
Explanation of Non-GAAP Measures
The information provided in this Form 8-K and exhibits includes measures which are not prepared in accordance with U.S. generally accepted accounting principles ("GAAP").
We present certain capital measures in this Form 8-K and exhibits. Our “fully-phased Tier 1 Capital and Credit Loss Reserve Ratio” is not required by regulators to be disclosed, and therefore is considered a non-GAAP measure. We believe this ratio is a useful measure to investors as it provides a meaningful measure of what the Company’s total loss absorption capacity would be.
We also present measures we refer to as “return on tangible common equity” and “tangible book value per share” in this Form 8-K and exhibits. Tangible book value per share is calculated based on tangible common equity divided by common shares outstanding. Tangible common equity itself is not a measure presented in accordance with GAAP. We believe tangible common equity, and tangible book value per share, are more meaningful measures to investors of the net asset value of the Company.
The reconciliations of these capital and equity related non-GAAP measures to the applicable comparable GAAP financial measures are included in the detailed financial tables included in Exhibit 99.2.
Within Exhibit 99.3 we present certain historical financial information for 2009 on a "managed" basis. These metrics presented on a managed basis are non-GAAP measures. A reconciliation of the corresponding GAAP financial metrics to the financial information presented on a managed basis is included in the appendix of Exhibit 99.3.