Total Revenue

0.1% increase (from $5,699M in Q1 2025 to $5,704M in Q2 2025) " "

**Total Revenue remained virtually flat because after the dramatic impact of the $1.1B Pets Best gain in Q1 2024 and its subsequent absence in Q1 2025, the revenue levels stabilized. The slight increase in Q2 2025 reflects the ongoing balancing of product, pricing, and policy factors that were already in play in prior periods. " " " " " **

Total Interest Income

0.07% increase (from $5,582M in Q2 2024 to $5,586M in Q2 2025) " " "

**Total Interest Income stayed nearly unchanged as the modest upward pressure from incremental increases in interest and fees on loans was offset by lower interest on cash and debt securities. This equilibrium follows the offsetting trends observed in earlier Q1 periods, where product and pricing adjustments balanced the effect of lower benchmark rates. " " " **

Home & Auto

1.6% decrease (from $1,470M in Q1 2025 to $1,447M in Q2 2025) " "

**The Home & Auto segment experienced a decline as lower purchase volume—attributable to reduced consumer traffic and the impact of credit actions—continued from Q1 2025. This contrasts with Q1 2024 when acquisition-driven higher loan receivables boosted performance, indicating that the recent downturn reflects a shift back toward lower consumer activity. " " " **

Digital

1.5% increase (from $1,553M in Q1 2025 to $1,576M in Q2 2025) " "

**The modest improvement in the Digital segment is driven by a more selective acquisition strategy and adjustments in product, pricing, and policy which helped recover some of the earlier decline in purchase volume. This recovery builds on the trends seen in Q1 2025 where a slight drop in interest and fees on loans was partially offset by gains in other income. " " **

Diversified & Value

1.9% decrease (from $1,178M in Q1 2025 to $1,156M in Q2 2025) " "

**The Diversified & Value segment’s decline is primarily due to lower interest and fees on loans caused by reduced loan receivables yield and decreased purchase volume, further compounded by lower active accounts as seen in Q1 2025. Although there was an improvement in other income from product, pricing, and policy changes, it was insufficient to prevent an overall drop. " " **

Net Interest Margin

H2 2025

no prior guidance

15.6% " "

no prior guidance

Expenses

FY 2025

no prior guidance

Increase by 3% " "

no prior guidance

Credit Performance and Management

In Q1 2025, improvements in delinquency rates, cautious net charge-off levels, and upgraded credit actions were highlighted. " " In Q4 2024, disciplined credit management and reserve releases were noted. "

Q2 2025 emphasized better-than-expected delinquency metrics, reserve releases, and selective unwinding of earlier credit actions, reflecting strong credit performance. " " "

Steady improvement with a shift toward unwinding some prior restrictive measures while maintaining disciplined credit management.

Loan Growth and Purchase Volume Trends

Q1 2025 mentioned lower purchase volume, modest decline in ending loan receivables, and an expectation of low single-digit growth. " " In Q4 2024, purchase volumes were impacted by credit actions but demonstrated resilience with modest loan growth. " "

Q2 2025 reported flat ending loan receivables and purchase volume down 2% year-over-year, with improved average transaction values and signs of seasonal recovery in certain platforms. " "

Mixed signals with stabilized receivables and slight seasonal improvements amid ongoing impacts from previous credit actions.

Capital Management and Deployment

Q1 2025 focused on new share repurchase authorizations, dividend increases, and robust capital ratios. " " Q4 2024 highlighted share repurchase progress and strong capital ratios with a planned capital plan. " "

Q2 2025 reiterated a strong capital position with an active share repurchase program (with $2 billion remaining), a dividend increase, and a 13.6% CET1 ratio, while mentioning a robust pipeline of acquisition opportunities. " "

Consistently strong capital management with continued shareholder return initiatives and flexibility in capital deployment.

Consumer Spending and Behavior Trends

Q1 2025 noted selective spending—with lower-income consumers tapering discretionary spending and higher-income consumers remaining steady. " " Q4 2024 emphasized selectivity, increased digital commerce, and a pullback among lower-income cohorts. " "

Q2 2025 continued the theme of selective spending; improved average transaction values, modest acceleration in digital channels, and slight growth in discretionary categories (e.g., restaurants and cosmetics) were observed. " " "

Persistent consumer selectivity with a slight improvement in digital and discretionary spending signals yet cautious consumer behavior remains.

Strategic Partnerships and Product Innovation

Q1 2025 highlighted new partnerships with Sun Country, CareCredit expansion, and renewals with major brands like Sam’s Club and JCPenney. " Q4 2024 discussed adding over 45 new partners and innovative launches like Synchrony Pay Later and enhanced CareCredit usage. "

Q2 2025 announced a new exclusive Walmart and One Pay program, renewed long-term relationship with Amazon (with a new BNPL offering), and an expanded physical PayPal Credit card, supported by product innovations enabled by GenAI. " " " "

Ongoing expansion through new and renewed partnerships combined with a robust drive for product innovation leveraging advanced technology.

Digital Transformation and Technology Investment

Q1 2025 mentioned technology investments as part of expense increases, while Q4 2024 focused on growth in digital wallet users, Apple Pay integration, and advanced analytics. " " "

Q2 2025 placed stronger emphasis on technology with heavy investments in GenAI (e.g., Synchrony GPT), advanced point-of-sale programs (Walmart One Pay), and an increased IT headcount, signaling a heightened digital transformation focus. "

A shift toward more advanced digital initiatives and AI investments compared to earlier periods.

Macroeconomic and Recession Risks

Q1 2025 addressed uncertainty including the potential impact of tariffs and recessionary dynamics with delayed charge-offs. " " Q4 2024 assumed a stable macro environment with outlined GDP growth, unemployment, and Fed rate forecasts. " "

Q2 2025 maintained a cautious outlook—acknowledging the uncertain macro backdrop while basing assumptions on the exclusion of deteriorating scenarios; confidence in portfolio positioning was emphasized despite ongoing uncertainty. " " " "

Consistent cautious optimism with steady baseline assumptions and continued monitoring of potential macroeconomic headwinds.

Expense Management and Margin Pressure

Q1 2025 reported a 3% rise in expenses (with technology investments and restructuring items) and noted a 33.4% efficiency ratio. " Q4 2024 highlighted improved efficiency through cost reductions and better expense control with an efficiency ratio of 33.3%. " "

Q2 2025 projected a 3% increase in total expenses (including marketing for Walmart One Pay and IT investments) while noting improved net interest margin performance despite margin pressures from RSAs and elevated payment rates. " " "

Moderate expense increases driven by strategic investments, with margin pressure being managed through pricing adjustments and cost controls.

Partner Dependency and Competitive Environment

Q1 2025 emphasized maintaining a diversified partner base, with renewals (e.g., Sam’s Club, JCPenney) and new partnerships with smaller firms; moreover, competitive challenges required careful deal assessments. " " " Q4 2024 stressed transparent alignment with partners and a robust pipeline of opportunities. " "

Q2 2025 reiterated strong partner alignment and dependency, highlighted by the new Walmart One Pay deal and ongoing discussions to balance pricing—affirming a rational competitive market where technology and disciplined underwriting provide differentiation. " " " "

Consistent focus on partner alignment and diversification, with a rational competitive environment enhanced by disciplined risk management and technology strategies.

Pricing and Policy Dynamics

Q1 2025 detailed PPPCs driving yield improvements and explored potential adjustments pending regulatory reviews, with partner-specific considerations. " " " Q4 2024 discussed PPPC implementation that supported higher interest and fee income while monitoring late fee regulation uncertainties. " " "

Q2 2025 noted that product pricing and policy changes contributed positively to net interest margin, with partner-by-partner adjustments keeping revenue impacts minimal, reinforcing a steady management of pricing dynamics. " "

Stable pricing and policy strategies with ongoing incremental adjustments and close partner collaboration to balance revenue impacts.

Inflationary Impact on Lower-Income Consumers

Q1 2025 noted that lower-income consumers had begun tapering spending—rotating out of discretionary and big-ticket items driven by inflation. " Q4 2024 highlighted that lower-income consumers were experiencing a pullback in spending due to inflation. "

Not mentioned in Q2 2025.

Previously observed impact on lower-income spending is absent in the current period, indicating a discontinuation of focus on this topic.