Total Revenue

Q1 2025 reached $3,718M (exact YoY percentage not provided)

Total Revenue hit $3,718 million in Q1 2025, reflecting the cumulative effect of operating improvements seen in interest and fee income components along with adjustments in non‐interest income relative to previous periods ( " " " ).

Interest Income

Approximately –5% (declining from $5,568M in Q1 2024 to $5,312M in Q1 2025)

The decline in Interest Income can be attributed to lower earnings on loans – possibly due to reduced balances or shifts in lending volumes – within an environment of evolving interest rates, which contrasts with the prior period’s higher figures ( " " ).

Interest Expense

Approximately –24% (dropping from $1,163M in Q1 2024 to $882M in Q1 2025)

The sharp decrease in Interest Expense indicates an improved cost of funds, likely from lower deposit rates or better funding mix, which contrasts positively with the higher expenses incurred in the previous period ( " " ).

Net Interest Income

Overall +1% increase (rising from $4,405M to $4,464M); Adjusted net interest income up 22% (from $1,757M to $2,078M)

Although declining interest income was observed, the significant drop in interest expense led to a slight overall increase in Net Interest Income. When adjustments for retailer share arrangements and credit loss provisions are factored in, it improved by about 22% over Q1 2024, highlighting the impact of proactive pricing and funding strategies relative to the prior period ( " " ).

Other Income

Approximately –80% (falling from $1,157M in Q1 2024 to $238M in Q1 2025)

The dramatic reduction in Other Income is driven by the absence of one-time or non-recurring gains (such as asset sale gains observed in Q1 2024) in the current period, underscoring a reversion to more normalized revenue streams compared to the prior period ( " " ).

Earnings Before Income Taxes

Approximately –42% (declining from $1,708M in Q1 2024 to $984M in Q1 2025)

The drop in Earnings Before Income Taxes largely reflects the combined impact of lower other income and compressed margins, in contrast to the relatively higher earnings in Q1 2024 when one-off gains helped boost earnings ( " " ).

Net Earnings

Approximately –41% (declining from $1,293M in Q1 2024 to $757M in Q1 2025); Net earnings available to common stockholders fell from $1,282M to $736M

Net Earnings fell by about 41% as lower operating performance and the absence of exceptional non-recurring income (e.g., asset sale gains experienced previously) dampened profitability relative to the previous period, affecting both overall net earnings and those available to common stockholders ( " " ).

Cash and Equivalents

Increased by about +52% (from $14,259M at Q4 2023 to $21,629M in Q1 2025)

The significant rise in Cash and Equivalents reflects stronger operating cash flows and effective financing activities, including increased deposits and controlled investing outflows, building on the liquidity improvements seen at the close of the prior period ( " " ).

Total Equity

Increased by approximately +19% (from $13,903M at Q4 2023 to $16,581M in Q1 2025)

Total Equity grew by about 19% due to robust profitability in previous periods feeding into retained earnings, along with strategic capital management and improvements in the funding mix, thereby reinforcing a stronger capital position relative to the end of the previous period ( " " ).

Receivables Growth

FY 2025

low single digits "

low single-digit receivables growth "

no change

Net Charge-Off Rate

FY 2025

5.8% to 6.1% "

5.5% to 6% " " "

lowered

Capital Levels

FY 2025

no prior guidance

CET1 ratio of 11% "

no prior guidance

Share Repurchase Authorization

FY 2025

no prior guidance

$2.5 billion share repurchase authorization " "

no prior guidance

Dividend Increase

FY 2025

no prior guidance

Increased dividend by 20% to $0.30 per common share, starting in Q2 2025 "

no prior guidance

Unemployment Rate Assumption

FY 2025

4.1% "

5.3% "

raised

Effective Credit Management & Credit Quality

In Q2 2024, Synchrony described proactive credit actions, improved delinquency and charge‐off trends, and targeted underwriting refinements. " " Q4 2024 emphasized disciplined credit measures, improved late-stage collections, and confidence in returning to target charge‐off ranges. " " "

In Q1 2025, the credit management strategy remains a priority with sophisticated underwriting, improved delinquency rates, and a resilient approach—even though net charge-offs ticked slightly higher. " " "

Consistent focus on credit quality with optimistic yet cautious sentiment, reflecting ongoing improvements and resilience in portfolio performance.

Consumer Spending Trends & Behavior

Q2 2024 highlighted a clear segmentation: affluent consumers remained resilient while lower-income segments pulled back and rotated into nondiscretionary spending. " In Q4 2024, a similar narrative emerged with disciplined spending across segments and selective discretionary purchases. " "

Q1 2025 reaffirmed that consumer spending remains strong and stable, with resilient higher-income behavior and a measured pullback among lower-income segments. Payment behaviors improved with increased above‐minimum payments. " " "

Steady sentiment throughout with consistent observations on consumer discipline; slight improvements in payment behavior indicate a positive nuance for future credit performance.

Loan Growth & New Account Acquisition Challenges

In Q2 2024, Synchrony recognized pressure on loan growth due to tighter underwriting and reduced purchase volumes; Q4 2024 echoed challenges from deliberate credit actions impacting new account additions and slower purchase volumes. " " "

In Q1 2025, there is continued headwind with a 2% YOY decline in ending loan receivables and challenges in new account acquisition from previous credit tightening, though the outlook hints at possible acceleration later in the year. " "

Persistent challenges, with credit actions and selective customer behavior continuing to weigh on volume, but optimism remains that recovery is possible in the back half of the year.

Partnerships & Renewal Strategy

Q2 2024 stressed a healthy pipeline with technology-driven differentiation and several new partner additions (e.g. Verizon, Virgin Red). " " Q4 2024 focused on strong multi-year renewals with key partners like JCPenney and Sam’s Club and highlighted a robust multi-product ecosystem. " "

Q1 2025 continued this strength by renewing major relationships (e.g., Sam’s Club, JCPenney) and adding over 10 new partners, with an increased percentage of revenue now under long-term contracts. " "

Robust and expanding, with a continued emphasis on strategic renewals and new partnerships that underpin long-term growth, demonstrating stable and positive sentiment.

Macroeconomic Risks & Inflation Impact

Q2 2024 discussions focused on economic uncertainty, inflation effects on different consumer segments, and cautious outlook on interest rate normalization. " " " Q4 2024 provided baseline macro assumptions and addressed how inflation influenced consumer and credit performance. " "

In Q1 2025, the discussion remains cautious, acknowledging recessionary risks, the impact of tariffs, and selective spending—all while noting that consumer resilience continues to support credit performance. " " "

Steady caution, with consistent risk management messaging; sentiment remains guarded but indicates preparedness for potential economic downturns.

Digital Platforms & Technology Investments

In Q2 2024, Synchrony underscored strong digital innovations, advanced analytics, and integration of digital wallet capabilities supporting partner relationships. " " In Q4 2024, major digital wallet growth (85% increase in active users, Apple Pay integration) was a key focus. " "

In Q1 2025, no specific discussion was noted on digital platforms beyond a mention of technology investment costs contributing to a 3% expense rise. "

Reduced emphasis in the current period relative to earlier periods, suggesting the topic is less front and center though it remains a strategic underpinning.

Cost Efficiency & Operational Leverage

Q2 2024 highlighted significant efficiency improvements (efficiency ratio at 31.7%) and controlled expense growth despite new initiatives. " Q4 2024 continued this narrative with an improved efficiency ratio (33.3%) and clear plans to advance operational leverage in 2025. " "

In Q1 2025, the efficiency ratio was 33.4% with a slight uptick in expenses due to restructuring and technology investments, indicating minor cost pressures despite overall operational discipline. "

Consistent cost discipline with a minor shift in sentiment as increased expenses are noted, yet the focus on operational leverage remains strong.

Capital Strategy & Shareholder Returns

Q2 2024 emphasized a disciplined capital reduction trajectory, returning $400 million to shareholders, and targeting a 11% CET1 ratio. " " Q4 2024 highlighted robust capital levels with strong return metrics, although buyback activity was more cautious amid market volatility. " "

In Q1 2025, a strong capital strategy is evident with a CET1 ratio of 13.2%, a new $2.5 billion share repurchase authorization, and a 20% increase in the dividend, underscoring an active commitment to shareholder returns. " "

Positive and aggressive, as capital management remains a key strength with enhanced shareholder returns and renewed commitment in the current period.

Pricing Strategy & Policy Adjustments

Q2 2024 discussions focused on monitoring the first wave of PPPCs via detailed dashboards, conservative assumptions on late fees, and controlled behavioral impacts. " " " Q4 2024 elaborated on the revenue impact from pricing adjustments and the careful approach toward potential regulatory changes. " "

In Q1 2025, Synchrony maintained that no immediate rollback of PPPCs is planned; partner engagement and flexible, alternative approaches are being considered if loan growth underperforms, ensuring prudent management of rate adjustments. " " "

Consistent and cautious, with a measured approach to pricing adjustments that balances growth, regulatory risks, and partner needs, reflecting an evolving but stable management stance.