SYF 10-K & 10-Q changes, risk factors and insider trading
Synchrony Financial (also SYF-PA, SYF-PB) · NYSE · Finance Services · CIK 1601712 · All filings on SEC.gov
At a glance
What changed in the latest 10-K
Risk Factors
Not available: the section could not be located automatically in both filings (non-standard layout or incorporated by reference). See the original filing. Open the filing on SEC.gov.
Management's Discussion & Analysis (MD&A)
New heading “Performance Metrics”
New heading “Funding, Liquidity and Capital(1)”
New heading “Loan receivables and Asset Quality”
New heading “Funding, Liquidity and Capital”
New heading “2025 Acquisitions and Partner Agreements”
Removed heading “Capital and Liquidity”
Removed heading “2024 Partner Agreements”
Removed heading “Health & Wellness”
Removed heading “Allowance for Credit Losses”
Largest changes
“•CFPB final rule on credit card late fees. On March 5, 2024, the CFPB issued a final rule amending its regulations that implement the Truth in Lending Act to, among other things, lower the safe harbor dollar amount for credit card late fees from $30 (adjusted to $41 for each subsequent late payment within the next six billing cycles) to $8 and eliminate the automatic annual inflation adjustment to such safe harbor dollar amount. The final rule, when effective, will result in a significant reduction in our interest and fees on loan receivables. …”see in full comparison
Full comparison: every changed paragraph (129)
Performance Metrics
Funding, Liquidity and Capital(1)
__________________ (1)Reported metrics represent amounts at December 31 of the applicable year.
Capital and Liquidity
Summary Highlights for the Year Ended December 31, 20242025
Below are highlights of our performance for the year ended December 31, 2024 compared to the year ended December 31, 2023, as applicable, except as otherwise noted.
•Net earnings increased 56.3% to $3.5 billion for the year ended December 31, 2024, primarily driven by the after-tax gain on sale related to Pets Best of $802 million, higher net interest income and lower retailer share arrangements, partially offset by an increase in provision for credit losses.
•Loan receivables increased 1.7% to $104.7 billion at December 31, 2024 compared to December 31, 2023, driven by lower customer payment rates and the impact of the Ally Lending acquisition, partially offset by lower purchase volume.
•Net interest income increased 6.0% to $18.0 billion for the year ended December 31, 2024. Interest and fees on loans increased 8.5%, primarily driven by growth in average loan receivables, the impact of our product, pricing and policy changes and lower payment rates. Interest expense increased 24.9%, due to higher benchmark rates and higher interest-bearing liabilities.
•Retailer share arrangements decreased 6.9% to $3.4 billion for the year ended December 31, 2024, primarily due to higher net charge-offs, partially offset by the impact of our product, pricing and policy changes.
•Over-30 day loan delinquencies as a percentage of period-end loan receivables decreased 4 basis points to 4.70% at December 31, 2024 from 4.74% at December 31, 2023. The net charge-off rate increased 144 basis points to 6.31% for the year ended December 31, 2024.
•Provision for credit losses increased by $768 million to $6.7 billion, for the year ended December 31, 2024, primarily driven by higher net charge-offs, partially offset by lower reserve build. The reserve build in the year ended December 31, 2024 included $180 million related to the Ally Lending acquisition. Our allowance coverage ratio (allowance for credit losses as a percentage of period-end loan receivables) increased to 10.44% at December 31, 2024, as compared to 10.26% at December 31, 2023.
•Other income increased by $1.2 billion to $1.5 billion for the year ended December 31, 2024, primarily driven by the $1.1 billion gain on sale related to the Pets Best disposition.
•Other expense increased by $81 million, or 1.7%, for the year ended December 31, 2024, primarily driven by technology investments, costs related to the Ally Lending acquisition and preparatory expenses related to the late fee rule change, partially offset by lower operational losses and prior year restructuring costs.
•At December 31, 2024, deposits represented 84% of our total funding sources. Total deposits increased 1.1% to $82.1 billion at December 31, 2024, compared to December 31, 2023.
•In February 2024, we issued depositary shares representing $500 million of Series B 8.250% fixed rate reset non-cumulative perpetual preferred stock.
•During the year ended December 31, 2024, we declared and paid cash dividends totaling $72 million on our Series A 5.625% fixed rate non-cumulative preferred stock and our Series B 8.250% fixed rate reset non-cumulative perpetual preferred stock.
•During the year ended December 31, 2024, we repurchased $1.0 billion of our outstanding common stock, and declared and paid cash dividends of $1.00 per common share, or $398 million in the aggregate. In April 2024, the Board of Directors approved an incremental share repurchase program of up to $1.0 billion, through June 30, 2025, and maintained the quarterly dividend at its current amount of $0.25 per common share. At December 31, 2024 we had a total share repurchase authorization of $600 million remaining. For more information, see “Capital—Dividend and Share Repurchases.”
•In March 2024, we sold our wholly-owned subsidiary, Pets Best, for consideration comprising a combination of cash and an equity interest in Independence Pet Holdings, Inc. The sale resulted in the recognition of a gain on sale of $1.1 billion, or $802 million net of tax.
•In March 2024, we acquired Ally Lending for cash consideration of $2.0 billion. The assets and liabilities of Ally Lending primarily included loan receivables with an unpaid principal balance of $2.2 billion. See Note 3. Acquisitions and Dispositions to our consolidated financial statements for additional information.
2024 Partner Agreements
During the year ended December 31, 2024, and to date, we continued to expand and diversify our portfolios with the addition or renewal of more than 90 partners, as well as enter new strategic relationships, which included the following:
•We added two new strategic technology partnerships with Adit Practice Management Software and ServiceTitan, both of which expand access for customers to our suite of credit products.
•We entered into a relationship with Atlanticus Holdings Corporation to deliver a preferred second look financing solution for private label credit cards and installment loan products across our business.
Summary Earnings
Trends disclosed below are compared to the year ended December 31, 2024, as applicable, except as otherwise noted.
Net earnings increased 1.5% to $3.6 billion for the year ended December 31, 2025, primarily reflecting the following key drivers:
•Decrease in provision for credit losses of $1.5 billion, primarily driven by lower net charge-offs, as well as a reserve release in the current year as compared to a reserve build in the prior year.
•Increase in net interest income of $455 million, primarily driven by lower interest expense and an increase in interest and fees on loans of 0.5%, partially offset by lower interest income on investment securities.
•These drivers were partially offset by lower other income due to the gain on sale related to Pets Best of $1.1 billion in the prior year, as well as higher retailer share arrangements.
Loan receivables and Asset Quality
•Loan receivables decreased 0.9% to $103.8 billion at December 31, 2025, reflecting the effects of higher payment rates as a result of our improved credit mix as well as flat purchase volume and lower average active accounts compared to the prior year.
•Over-30 day loan delinquencies as a percentage of period-end loan receivables decreased 21 basis points to 4.49% at December 31, 2025 from 4.70% at December 31, 2024. The net charge-off rate decreased 66 basis points to 5.65% for the year ended December 31, 2025.
•Our allowance coverage ratio (allowance for credit losses as a percentage of period-end loan receivables) decreased to 10.06% at December 31, 2025, as compared to 10.44% at December 31, 2024.
Funding, Liquidity and Capital
•At December 31, 2025, deposits represented 84% of our total funding sources. Total deposits decreased 1.1% to $81.1 billion at December 31, 2025, compared to December 31, 2024.
•During the year ended December 31, 2025, we repurchased $2.9 billion of our outstanding common stock, and declared and paid cash dividends of $1.15 per common share, or $427 million in the aggregate. At December 31, 2025 we had a total share repurchase authorization of $1.2 billion remaining.
2025 Acquisitions and Partner Agreements
In October 2025, we acquired Versatile Credit, Inc. ("Versatile Credit"), a leading multi-source financing platform connecting merchants, lenders and consumers through point-of-sale solutions.
During the year ended December 31, 2025, and to date, we continued to expand and diversify our portfolios with the addition or renewal of more than 75 partners, which included the following:
•In addition, we expanded our existing Lowe's commercial program and announced the acquisition of the Lowe's commercial co-branded credit card portfolio, with loan receivables of approximately $0.8 billion, which is expected to close in the first half of 2026.
•In October 2025, we also sold $0.2 billion of loan receivables associated with a Home & Auto partner program agreement.
The following table sets forth our results of operations for the periods indicated.
____________________ (1)Average yields / rates are based on total interest income/expense divided by average balances.
The following table sets forth the amount of changes in interest income and interest expense due to changes in average volume and average yield / rate. Variances due to changes in both average volume and average yield / rate have been allocated between the average volume and average yield / rate variances on a consistent basis based upon the respective percentage changes in average volume and average yield/rate.
•CFPB final rule on credit card late fees. On March 5, 2024, the CFPB issued a final rule amending its regulations that implement the Truth in Lending Act to, among other things, lower the safe harbor dollar amount for credit card late fees from $30 (adjusted to $41 for each subsequent late payment within the next six billing cycles) to $8 and eliminate the automatic annual inflation adjustment to such safe harbor dollar amount. The final rule, when effective, will result in a significant reduction in our interest and fees on loan receivables. Industry organizations have challenged the final rule in court. The final rule had an original effective date of May 14, 2024; however, on May 10, 2024, the United States District Court for the Northern District of Texas granted an injunction and stay of the final rule, and the injunction remains in effect. As a result, the ultimate outcome and impact of this litigation on the final rule, including whether the final rule will become effective, and if it were to becomes effective, the timing of such implementation, is uncertain.
In anticipation that the final rule will become effective, in 2024 we implemented a number of product, pricing and policy changes. See below for discussions on our other trends and conditions, which include consideration of the impact of these changes upon our business and results of operations.
While we continue to believe that over time the strategies we have implemented will fully offset the decline in late fee income resulting from an effective final rule, it may take time for such product, pricing and policy changes to offset the expected reduction in late fees if the final rule is implemented. In addition, in the event that the final rule is implemented, this would result in a decrease in payments to partners pursuant to our retailer share arrangements. However, the effects of the final rule are also subject to other factors that could increase the adverse effects to our results of operations, including any potential changes in consumer behavior in response to the product, pricing and policy changes or the implementation of the final rule itself, if that occurs.
For a discussion of risks related to a CFPB final late fee rule, please see “—Risk Factors Relating to Our Business—The CFPB’s final rule on credit card late fees, if implemented, would likely materially adversely affect our business and results of operations.”
•Growth in loan receivables and interest and fees on loans. For the year ended December 31, 20242025 we experienced ana increasedecrease in period-end loan receivables of 1.7%0.9%, reflecting higher payment rates as a result of our improved credit mix, as well as flat purchase volume and lower average active accounts compared to the year ended December 31, 2024 as the credit actions we took across our portfolio in prior years continued moderation of customer payment behavior and theto impact ofloan thereceivable Allygrowth. Lending acquisition, and interestInterest and fees on loans increased by 8.5%,0.5%, driven primarily by loan receivables growth and the impacts from the implementation of our product, pricing and policy changes.changes, Theseoffset factorsby werea combination of lower benchmark rates and a decrease in average loan receivables, as well as lower late fee incidence. In 2026, we expect loan receivables to increase, reflecting growth in both purchase volume and average active accounts, including the impact from new or recently launched programs, partially offset by acontinued decrease in purchase volume of 1.6%, primarily driven by lower consumer spending and the impactseffects from creditelevated actionspayment we have taken across our portfolio.rates. In 2025,addition, we expect interest and fees on loans to increase, primarily reflecting the continued impact of our product, pricing and policy changeschanges, implementedand growth in 2024, and expect loan receivables growth to continue to be impacted by the effects from the credit actions we have taken and consumer spend behavior, while also reflecting generally stable customer payment rates.receivables. In addition, the amount of the increases will be dependent on various factors, including whether customer payment rate trends and consumer spend behavior differs from our expectations, as well as any changes in benchmark interest rates.rates Seeor aboveother forregulatory potentialor additionallegislative impactsdevelopments fromthat may impact the CFPB final ruleyield on creditour cardloan late fees.receivables.
•Asset quality. As a result ofDuring the continuedyear moderationended ofDecember customer31, payment behavior,2025 our asset quality metrics have generally been higher during 2024improved as compared to the prior yearyear, period.reflecting the impact of prior credit actions and elevated customer payment rates. Our net charge-off rate for the year ended December 31, 20242025 increaseddecreased by 14466 basis points to 6.31%5.65% and ourboth over-30 and over-90 day loan delinquencies as a percentage of period-end loan receivables at December 31, 20242025 increaseddecreased by 12over 20 basis points compared to 2.40%.the However,prior ouryear. over-30 day loan delinquencies asAs a percentageresult of period-end loan receivables decreased by 4 basis points to 4.70% at December 31, 2024 reflecting the impact of thethese credit actionstrends, we haveexpect taken. We anticipate thatour net charge-offs for the year ended December 31, 20252026 will decrease,remain primarilyin reflectingline thewith stabilizationour long-term target range of our5.5% delinquencyto rates and the impacts from the credit actions we have taken.6.0%. At December 31, 20242025 our allowance coverage rate was 10.44%.10.06%. We anticipate that our allowance coverage rate will moderateremain consistent in 20252026 reflecting the credit trends discussed above.
•Funding costs. During 2024the year ended December 31, 2025 benchmark interest rates remaineddecreased atfrom their recently elevated levels for the majority of the year, before lowering beginning in September 2024, which contributed to ana increasedecrease in our cost of funds of 6244 basis points compared to the prior year, to 4.72%.4.28%. In addition, our average funding liabilities have also increaseddecreased toby support the growth in our loan receivables.1.4%. As a result, interest expense for the year ended December 31, 20242025 increaseddecreased by $923$499 million or 24.9%,10.8%, compared to the prior year. We anticipate both interest expense and our cost of funds will decrease in 20252026 due to the lower benchmark rates, including the effects of our certificates of deposit maturities repricing. The amount of the decreases, however, will be dependent on any further benchmark rate changes, competition for our deposit product offerings, the extent of the growth in our loan receivables and the funding mix utilized to support our growth in loan receivables.
•Retailer share arrangement payments under our program agreements. Retailer share arrangements decreasedincreased 6.9%17.6% to $3.4$4.0 billion for the year ended December 31, 2024,2025, primarily due to higherlower net charge-offs,charge-offs partially offset byand the impact of our product, pricing and policy changes. We believe that the payments we make to our partners under our retailer share arrangements, in the aggregate, in 20252026 will increase compared to the year ended December 31, 2024,2025, primarilyreflecting continued improvement in program performance, as awell resultas of the impact of our product, pricing and policy changes and an expected reductiongrowth in netloan charge-offs. The expected trend in retailer share arrangements will be dependent in part on the precise timing and extent of the anticipated credit trends discussed above and the magnitude of impact from our product, pricing and policy changes.receivables. See Management’s Discussion and Analysis—Retailer Share Arrangements for additional information on these agreements. See above for potential additional impacts from the CFPB final rule on credit card late fees.
The current expiration dates of our program agreements with our five largest partners range from 20262030 through 2034.2035. In addition, a total of 1722 of our 25 largest program agreements have an expiration date in 20272028 or beyond. These 1722 program agreements represented, in the aggregate as a percentage of the total attributable to our 25 largest programs, 82%97% of our interest and fees on loans for the year ended December 31, 20242025 and 81%95% of our loan receivables at December 31, 2024.2025.
•Growth in otherinterchange income.revenue and loyalty program costs. During the year ended December 31, 2024,2025, otherinterchange incomerevenues includedand theloyalty $1.1costs billionboth gainincreased onas sale relatedcompared to the dispositionprior of Pets Best. Absent the effects of this gain, we expect other income to increase in 2025 primarily due to the impact of our product, pricing and policy changes implemented in 2024.year. We also believe that as a result of the overall growth in Dual Card transactions occurring outside of our credit card partners’ locations and general purpose co-branded credit card transactions, interchange revenues will increase.continue to increase in 2026. The expected growth in these transactions is driven, in part, by both existing and new loyalty programs with our credit card partners. In addition, we continue to offer and add new loyalty programs for our private label credit cards, for which we typically do not receive interchange fees. We expect the continued growth in these existing and new loyalty programs will result in an increase in costs associated with these programs. ForAs thea yearresult endedof Decemberthese 31, 2024,factors, our loyalty program costs exceeded our interchange revenues andfor the year ended December 31, 2025. In 2026, we expect athe relativelygrowth similarin relationshiployalty betweenprogram costs will exceed the growth in interchange revenues, reflecting these costssame and revenues to continue in 2025.factors. These trends have been contemplated in our program agreements with our partners and are a component of the calculation of our payments due under our retailer share arrangements.
•Capital and liquidity levels. At December 31, 2025, the Company had a Basel III common equity Tier 1 ratio of 12.6%. We continue to expect to maintain capital ratios well in excess of minimum regulatory requirements and sufficient capital and liquidity resources to support our daily operations, our business growth, and our credit ratings as well as regulatory and compliance requirements in a cost effective and prudent manner through expected and unexpected market environments.ratings. During the year ended December 31, 2024,2025, we declared and paid common stock dividends of $398$427 million and repurchased $1.0$2.9 billion of our outstanding common stock. At December 31, 2025 we had $1.2 billion remaining in share repurchase authorization. We plan to continue to deploy capital through both dividends and share repurchases, as guided by our business performance, market conditions and subject to regulatory restrictions. At December 31, 2024 we had $600 million remaining in share repurchase authorization. We continue to expect to maintain capital ratios well in excess of minimum regulatory requirements. At December 31, 2024, the Company had a Basel III common equity Tier 1 ratio of 13.3%, which reflects our election to defer the impact of CECL on our regulatory capital and the current year phase-in, which cumulatively represents 75% of the impact. The effects of CECL will be fully phased-in beginning in the first quarter of 2025, which we expect will result in a reduction of our common equity Tier 1 ratio of approximately 50 additional basis points.
Our business is characterized by a consistent seasonal pattern, with purchase volume and loan receivables typically rising beginning in the third quarter and generally peaking in fourth quarter, including the impacts of consumer spending for U.S. holidays, then declining through the first and second quarters as customers pay their balances down.
Delinquency rates and delinquent loan receivables balances typically rise in the third and fourth quarters as customer payment rates decline, resulting in higher net charge-off rates in the first half of the calendar year. Delinquent loan receivables at year-end are more likely to return to current status than those delinquent at interim period ends. Consistent with historical experience, our allowance for credit losses as a percentage of total loan receivables is generally higher at interim period ends than at year-end and may increase mid-year even when certain credit metrics improve.
We experience fluctuations in purchase volume and the level of loan receivables as a result of higher seasonal consumer spending and payment patterns that typically result in an increase of loan receivables from August through a peak in late December, with reductions in loan receivables typically occurring over the first and second quarters of the following year as customers pay their balances down.
TheThese seasonal impactimpacts to purchase volume and theour loan receivables balancebalances typicallymay resultsmaterially in fluctuations inaffect our results of operations, delinquency metrics and the allowance for credit losses as a percentage of total loan receivables betweenwith quarterly periods. These fluctuations are generallythe most evidentpronounced effects typically occurring between the fourth quarter and the subsequent first quarter of the following year.quarter.
What changed in the latest 10-Q
Risk Factors
There have been no material changes to the risk factors included in our 2025 Form 10-K under the heading “Risk Factors Relating to Our Business” and “Risk Factors Relating to Regulation”.
No wording changes found in this section.
Full comparison: every changed paragraph (0)
Management's Discussion & Analysis (MD&A)
New heading “Change in Presentation”
New heading “Goodwill and Intangible Assets”
New heading “NOTE 12. EQUITY AND OTHER STOCK RELATED INFORMATION”
New heading “Preferred Stock”
Removed heading “Health & Wellness”
Removed heading “Health & Wellness”
Largest changes
“We do not amortize goodwill but test it at least annually for impairment at the reporting unit level pursuant to FASB Account Standards Codification ("ASC 350"), Intangibles—Goodwill and Other. A reporting unit is defined under GAAP as the operating segment, or one level below that operating segment (the component level) if discrete financial information is prepared and regularly reviewed by segment management. Our single operating segment comprises a single reporting unit, based on the level at which segment management regularly reviews and measures the business operating results.”see in full comparison
“Goodwill impairment risk is first assessed by performing a qualitative review of entity-specific, industry, market and general economic factors for our reporting unit. If potential goodwill impairment risk exists that indicates that it is more likely than not that the carrying value of our reporting unit exceeds its fair value, a quantitative test is performed. The quantitative test compares the reporting unit’s estimated fair value with its carrying value, including goodwill. …”see in full comparison
“Other assets primarily consist of deferred income taxes, premises and equipment, which includes internal-use capitalized software, investments in affordable housing properties, equity method investments, and contract costs related to our retail partner agreements. Certain costs incurred to develop or acquire internal-use software are capitalized and amortized on a straight-line basis over their respective estimated useful life, generally five years, and the amortization is included as a component of Information processing costs in our Condensed Consolidated Statements of Earnings. …”see in full comparison
“Definite-lived intangible assets primarily consist of customer-related assets, including purchased credit card relationships, which are amortized over their estimated useful lives. Definite-lived intangible assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. The evaluation compares the cash inflows expected to be generated from each intangible asset to its carrying value. …”see in full comparison
Full comparison: every changed paragraph (175)
We are a premier consumer financial services company delivering one of the industry's most complete digitally-enabled product suites. Our experience, expertise and scale encompass a broad spectrum of industries including digital, health and wellness, retail, telecommunications, home, auto, outdoor, pet and more. We have an established and diverse group of national and regional retailers, local merchants, manufacturers, buying groups, industry associations and healthcare service providers, which we refer to as our “partners.” For the three and six months ended MarchJune 31,30, 2026, we financed $43.0$49.8 billion and $92.8 billion of purchase volumevolume, respectively, and had 68.868.3 million and 68.7 million average active accountsaccounts, respectively, and at MarchJune 31,30, 2026, we had $100.1$102.2 billion of loan receivables.
We offer our credit products primarily through our wholly-owned subsidiary, the Bank. In addition, through the Bank, we offer, directly to retail, affinity relationships and commercial customers, a range of deposit products insured by the Federal Deposit Insurance Corporation (“FDIC”), including certificates of deposit, individual retirement accounts (“IRAs”), money market accounts, savings accounts and sweep and affinity deposits. We also take deposits at the Bank through third-party firms that offer our FDIC-insured deposit products to their customers. Our deposit base has continued to serve as a source of stable and diversified low-cost funding for our credit activities. At MarchJune 31,30, 2026, we had $82.9$82.8 billion in deposits, which represented 83% of our total funding sources.
Home & Auto
Health & Wellness
Lifestyle
The following table sets forth each credit product by type and indicates the percentage of our total loan receivables that are under standard terms only or pursuant to a promotional financing offer at MarchJune 31,30, 2026:
We offer the following principal types of consumer credit cards:
•Co-Branded Cards. Our co-branded cards comprise our patented Dual Cards and general purpose co-branded credit cards. Our Dual Cards are credit cards that function as private label credit cards when used to purchase goods and services from our partners, and as general purpose credit cards when used to make purchases from other retailers wherever cards from those card networks are accepted or for cash advance transactions. We also offer a Synchrony-branded general purpose credit card. Our co-branded cards are offered across all of our sales platforms and credit is typically extended on standard terms only. We offer consumer co-branded cards through over 15 of our large partners, of which the majority are Dual Cards, as well as our CareCredit Dual Card. Our consumer co-branded cards totaled 34% of our total loan receivables portfolio at MarchJune 31,30, 2026.
We offer private label cards and Dual Cards for commercial customers that are similar to our consumer offerings.offerings, and includes the Lowe's commercial co-branded credit card portfolio acquired in April 2026. We also offer a commercial pay-in-full accounts receivable product to a wide range of business customers.
We believe our business and results of operations will be impacted in the future by various trends and conditions. For a discussion of certain trends and conditions, see “Management's Discussion and Analysis of Financial Condition and Results of Operations—Business Trends and Conditions” in our 2025 Form 10-K. For a discussion of how certain trends and conditions impacted the three and six months ended MarchJune 31,30, 2026, see “—Results of Operations.”
Delinquency rates and delinquent loan receivables balances typically rise in the third and fourth quarters as customer payment rates typically decline, resulting in higher net charge-off rates in the first half of the calendar year. Delinquent loan receivables at year-end are more likely to return to current status than those delinquent at interim period ends. Consistent with this historical experience, our allowance for credit losses as a percentage of total loan receivables is generally higher at interim period ends than at year-end and may increase mid-year even when certain credit metrics improve.
These seasonal impacts to purchase volume and our loan receivables balances may materially affect our results of operations, delinquency metrics and the allowance for credit losses as a percentage of total loan receivables with the most pronounced effects typically occurring between the fourth quarter and the subsequent first quarter. Our loan receivables decreased by $3.7 billion, or 3.6% to $100.1 billion at March 31, 2026 compared to $103.8 billion at December 31, 2025, and our allowance for credit losses as a percentage of total loan receivables increased to 10.42% at March 31, 2026, from 10.06% at December 31, 2025, reflecting these same seasonal trends.
Summary Highlights for the Three and Six Months Ended MarchJune 31,30, 2026
Trends disclosed below are compared to the three months ended March 31, 2025, as applicable, except as otherwise noted.
Net earnings increaseddecreased to $805$885 million from $757$967 million and was flat at $1.7 billion for the three and six months ended MarchJune 31,30, 2026, respectively, primarily reflecting the following key drivers:
•IncreaseIncreases in net interest income of $171$87 million,million and $258 million for the three and six months ended June 30, 2026, respectively, primarily driven by lowerdecreases in interest expense and an increaseincreases in interest and fees on loans of 1.9%,loans, partially offset by lower interest income onfrom our liquidity portfolio.
•Decrease in provisionProvision for credit losses ofincreased $156$55 million,million for the three months ended June 30, 2026, primarily driven by a lower reserve release in the current year period, partially offset by a decrease in net charge-offs. Provision for credit losses decreased $101 million in the six months ended June 30, 2026, primarily driven by a decrease in net charge-offs, partially offset by a $97 millionlower reserve release in the priorcurrent year period.
•Retailer share arrangements increased $35 million and $210 million for the three and six months ended June 30, 2026, respectively, reflecting program performance and higher purchase volume, and other expense increased $86 million and $159 million for the three and six months ended June 30, 2026, respectively, primarily driven by higher operational losses and costs related to technology investments.
•These drivers were partially offset by higher retailer share arrangements of $175 million and higher other expense of $73 million.
•Loan receivables wereincreased flat2.4% atto $100.1$102.2 billion at MarchJune 31,30, 2026,2026 compared to June 30, 2025, reflecting higher purchase volumevolume, including the impact of the acquisition of the Lowe's commercial co-branded credit card portfolio, partially offset by the effects of higher payment rates.
•Over-30 day loan delinquencies as a percentage of period-end loan receivables increaseddecreased 2 basis points to 4.54%4.16% at MarchJune 31,30, 2026 from 4.52%4.18% at MarchJune 31,30, 2025. The net charge-off rate decreased 9627 basis points toand 5.42%61 basis points for the three and six months ended MarchJune 31,30, 2026.2026, respectively, to 5.43% for both periods.
•Our allowance coverage ratio (allowance for credit losses as a percentage of period-end loan receivables) decreased to 10.42%10.09% at MarchJune 31,30, 2026, as compared to 10.87%10.59% at MarchJune 31,30, 2025.
•At MarchJune 31,30, 2026, deposits represented 83% of our total funding sources. Total deposits increased by 2.2%2.0% to $82.9$82.8 billion at MarchJune 31,30, 2026, compared to December 31, 2025.
•In June 2026, we issued depositary shares representing $500 million of 7.250% fixed rate reset non-cumulative perpetual preferred stock, Series C, with dividends payable quarterly beginning in August 2026.
•During the threesix months ended MarchJune 31,30, 2026, we repurchased $900$1.8 millionbillion of our outstanding common stock, and declared and paid cash dividends of $0.30$0.60 per share, or $104$204 million in the aggregate.
•At June 30, 2026, we had a total remaining share repurchase authorization of $5.7 billion under the program that was announced in April 2026 and does not have an expiration date. In addition, the Company announced that the Board approved an increase of our quarterly dividend to $0.34 per common share commencing in the third quarter of 2026.
•In April 2026, the Company announced that the Board approved a new share repurchase program of up to $6.5 billion of the Company’s common stock, which commences in the second quarter of 2026 and, in a change from our prior share repurchase programs, does not have an expiration date. The new share repurchase program replaces the Company’s prior program, which was scheduled to expire on June 30, 2026. The pace and amount of share repurchases under the program are flexible, and will be executed from time to time subject to various factors, including capital levels, financial performance, market conditions and legal and regulatory requirements, and in accordance with our capital plans. In addition, the Board approved a planned increase to our quarterly dividend to $0.34 per common share commencing in the third quarter of 2026.
During the threesix months ended MarchJune 31,30 2026, and to date, we continued to expand and diversify our portfolio with the addition or renewal of more than 1530 partners, which included the following:
•ExpandedIn our Health & Wellness sales platform, we also expanded CareCredit partnerships with pet insurance providers, Figo and Embrace, to enable reimbursements back to CareCredit accounts, making the solution available for more than 1.7 million pets.
•In April 2026, we completed the acquisition of $0.7 billion of loan receivables associated with the Lowe's commercial co-branded credit card portfolio, which are included within our Home & Auto sales platform results.
The following tabletables setsset forth information for the periods indicated regarding average balance sheet data, which are used in the discussion of interest income, interest expense and net interest income that follows:
(2)Includes average restricted cash balances of $60$691 million and $690$642 million for the three months ended MarchJune 31,30, 2026 and 2025, respectively, and $377 million and $666 million for the six months ended June 30, 2026 and 2025, respectively.
(3)Interest income on loan receivables includes fees on loans, which primarily consist of late fees on our credit products, of $559$508 million and $588$560 million for the three months ended MarchJune 31,30, 2026 and 2025, respectively.respectively, and $1.1 billion for both of the six months ended June 30, 2026 and 2025.
Interest income increasedwas by $53 million, or 1.0%flat for the three months ended MarchJune 31,30, 2026,2026 reflecting an increase of 1.9%1.0% in interest and fees on loans offset by lower interest income from our liquidity portfolio. Interest income increased $50 million, or 0.4%, for the six months ended June 30, 2026 reflecting an increase of 1.4% in interest and fees on loans, partially offset by lower interest income from our liquidity portfolio. The increaseincreases in interest and fees on loans wasfor the three and six months ended June 30, 2026 were primarily driven by growth in average loan receivables, as well as the impact of our product, pricing and policy changes,changes partiallyfor offsetthe bysix lowermonths benchmarkended rates.June 30, 2026.
Average loan receivables, including held for sale, wereincreased flat1.5% comparedand to0.6% for the three and six months ended MarchJune 31,30, 2025,2026, respectively, reflecting higher purchase volumevolume, partially offset by the effects of higher payment rates. Purchase volume increased by 5.6%8.1% and 6.9% for the three and six months ended MarchJune 31,30, 2026, respectively, primarily reflecting the impacts of partner expansion and higher spend per average active account.
The yield on average interest-earning assets increased by one basis point and 21 basis points for the three and six months ended June 30, 2026, respectively.
The change in yield on average interest-earning assets increased for the three months ended MarchJune 31,30, 2026 primarily due to increases inreflects the yieldimpact on average loan receivables andof the mix of loan receivables as a percentage of interest-earning assets versus the prior year, partially offset by adecreases lowerin the yield on both loan receivables and our liquidity portfolio. The loan receivables yield increaseddecreased 4711 basis points to 21.80%21.43% for the three months ended MarchJune 31,30, 2026,2026 primarily driven by lower benchmark rates and lower assessed late fees, partially offset by the impacts of our product, pricing and policy changes, partially offset by the impact of lower benchmark rates.changes.
The increase in yield on average interest-earning assets for the six months ended June 30, 2026 was primarily driven by an 18 basis point increase in loan receivables yield, as well as the mix of loan receivables as a percentage of interest-earning assets. The higher loan receivables yield was primarily driven by the impacts of our product, pricing and policy changes, partially offset by the impact of lower benchmark rates and lower assessed late fees.
Interest expense decreased by $118$90 million, or 10.9%,8.5%, and $208 million, or 9.7%, for the three and six months ended MarchJune 31,30, 2026, respectively, primarily due to lower interest-bearing liabilities cost associated with lower benchmark rates. Our cost of funds decreased to 4.04%3.96% and 4.00% for the three and six months ended MarchJune 31,30, 2026, respectively, compared to 4.48%4.35% and 4.41% for the threerespective monthsprior endedyear March 31, 2025.periods.
Net interest income increased by $171$87 million, or 3.8%,1.9%, and $258 million, or 2.9%, for the three and six months ended MarchJune 31,30, 2026, respectively, resulting from the changes in interest income and interest expense discussed above.
Retailer share arrangements increased by $175$35 million, or 19.6%,3.5%, and $210 million, or 11.1%, for the three and six months ended MarchJune 31,30, 2026, respectively, reflecting program performanceperformance, which included lower net charge-offscharge-offs, and the impact of our product, pricing and policy changes.changes, as well as higher purchase volume.
Provision for credit losses decreasedincreased by $156$55 million, or 10.5%,4.8%, and decreased by $101 million, or 3.8%, for the three and six months ended June 30, 2026, respectively. The increase in the three months ended MarchJune 31,30, 2026,2026 was primarily driven by a lower reserve release in the current year period, partially offset by lower net charge-offs. The decrease in the six months ended June 30, 2026 was primarily driven by lower net charge-offs, partially offset by a lower reserve release in the priorcurrent year period.
Net charge-offs for the three months ended March 31, 2026 decreased by $242 million. The net charge-off rate for the three months ended March 31, 2026 decreased by 96 basis points to 5.42%, as compared to the prior year period, and we expect our net charge-off rate for the year ended December 31, 2026 will be below our long-term target range of 5.5% to 6.0%.
The reserve releasereleases for the three and six months ended MarchJune 31,30, 2026 waswere $11$163 million and $174 million, respectively, as compared to a reserve releasereleases of $97$265 million and $362 million in the respective prior year period.periods.
Net charge-offs for the three and six months ended June 30, 2026 decreased by $47 million and $289 million, respectively. The net charge-off rate decreased by 27 basis points and 61 basis points for the three and six months ended June 30, 2026, respectively, to 5.43% for both periods, and we expect our net charge-off rate for the year ended December 31, 2026 will be below our long-term target range of 5.5% to 6.0%.
Other income decreasedincreased by $16 million to $133$19 million, or 16.1%, and $3 million, or 1.1%, for the three and six months ended MarchJune 31,30, 2026.2026, respectively.
The increases in the three and six months ended June 30, 2026 were primarily driven by increases in other income, interchange revenue, and protection product revenue. These increases were partially offset by higher loyalty costs. During the three months ended June 30, 2026, we participated in the Visa exchange offer, which included the exchange of Visa Class B-2 common stock for Visa Class C common stock, which was recorded at fair value. The increases in other income for the three and six months ended June 30, 2026 were driven primarily by a gain of $30 million related to the exchange of Visa Class B-2 common stock.
The decrease in the three months ended March 31, 2026 was primarily driven by higher loyalty costs, partially offset by higher interchange revenue and protection product revenue.
Other expense increased by $73$86 million, or 5.9%,6.9%, and $159 million, or 6.4%, for the three and six months ended MarchJune 31,30, 2026.2026, respectively.
The increaseincreases infor the three and six months ended MarchJune 31,30, 2026 was primarilywere driven by higher informationother processing costsexpense and higher other expense. The increase in information processing costs, reflecting increased operational losses and costs was primarily related to technology investments, as well as higher association fees related to the purchase volume growth on our co-branded cards. The increase in other expense was primarily driven by higher operational losses.investments.
The effective tax rate for the three and six months ended MarchJune 31,30, 2026 was flatincreased compared to the same periods in the prior year.year primarily due to tax benefits recognized in the prior year related to the remeasurement of deferred tax assets for increases in state tax rates. The effective tax rate differs from the applicable U.S. federal statutory tax rate primarily due to state income taxes.
As discussed above under “—Our Sales Platforms,” we offer our credit products primarily through five sales platforms (Home & Auto, Digital, Diversified & Value, Health & Wellness and Lifestyle). The following is a discussion of certain supplemental information for the three and six months ended MarchJune 31,30, 2026, for each of our five sales platforms and Corp, Other.
In 2025, we sold $0.2 billion of loan receivables associated with a Home & Auto partner program agreement. All related prior-period reported metrics for our Home & Auto sales platform and Corp, Other have been recast to reflect activity related to this portfolio within Corp, Other below.
Home & Auto
Home & Auto interest and fees on loans decreasedremained by $23 million, or 1.6%,flat for the three months ended MarchJune 31,30, 2026 and decreased by $24 million, or 0.9%, for the six months ended June 30, 2026, primarily driven byreflecting lower average loan receivables, partially offset by higher loan receivables yield. The decrease in average loan receivables was primarily driven by higher payment rates.rates, partially offset by the impact of the acquisition of the Lowe's commercial co-branded credit card portfolio. The increase in loan receivables yield reflects the impact of product, pricing and policy changes, partially offset by lower late fee incidence.
Purchase volume wasincreased flatby 5.8% and 3.1% for the three and six months ended MarchJune 31,30, 2026, respectively, primarily reflecting higherthe spendperformance perof averagenew active account and partner expansion in Furniture and Electronics, offset by selective spend in Home Improvement and lower average active accounts.programs. Average active accounts decreased by 5.9%2.5% and 4.0% for the three and six months ended MarchJune 31,30, 2026.2026, respectively.
Other income decreasedincreased by $1$11 million, or 1.8%,21.2%, and $10 million, or 9.3%, for the three and six months ended MarchJune 31,30, 2026, respectively, primarily due to higher protection product revenue and higher interchange revenue, partially offset by higher loyalty costs.
Digital interest and fees on loans increased by $88$28 million, or 5.7%,1.8%, and $116 million, or 3.7% for the three and six months ended MarchJune 31,30, 2026, respectively, primarily driven by higher loan receivables yield, reflecting the impacts of product, pricing and policy changes, as well as higher average loan receivables, partially offset by lower benchmark rates.
Purchase volume increased by 8.2%9.2% and 8.7% for the three and six months ended MarchJune 31,30, 2026, respectively, primarily drivenreflecting bystrong performance across partners with broad diversified offerings which drove both higher spend per average active account and customerhigher responseaverage toactive enhanced product offerings and refreshed value propositions.accounts. Average active accounts increased by 2.7%1.4% and 2.0% for the three and six months ended MarchJune 31,30, 2026.2026, respectively.
Diversified & Value interest and fees on loans increased by $17$18 million, or 1.4%,1.6%, and $35 million, or 1.5%, for the three and six months ended MarchJune 31,30, 2026, respectively, primarily driven by higher average loan receivables reflecting the impact of partner expansion, partially offset by a decrease in loan receivables yield. The decreasedecreases in loan receivables yield primarily reflectsreflecting lower benchmark rates, partially offset by the impacts of product, pricingrates and policylower changes.late fee incidence.
SYF insider buying and selling (Form 4)
Since 2026-04-11, insiders reported open-market purchases in 0 Form 4 filings and open-market sales in 8 filings (6 insiders, 4 trade dates, 80,275 shares, about $5.9M; 8 of these filings say the sales were made under a Rule 10b5-1 trading plan). Net open-market shares: -80,275 (purchases minus sales); net value about -$5.9M.Totals add up every open-market (code P and S) line in those filings, using the prices reported in the filings. Awards, option exercises, tax withholding and gifts are listed below but not counted.
| Trade date | Insider | Transaction | Shares | Price | Value |
|---|---|---|---|---|---|
| 2026-09-30 | Coviello Arthur W Jr |
Grant/award | 846 | $70.97 | $60.0K |
| 2026-09-30 | Alves Paget Leonard |
Grant/award | 846 | $70.97 | $60.0K |
| 2026-09-30 | Aguirre Fernando |
Grant/award | 846 | $70.97 | $60.0K |
| 2026-09-30 | Colao Daniel O |
Grant/award | 846 | $70.97 | $60.0K |
| 2026-09-30 | Naylor Jeffrey G |
Grant/award | 1,287 | $70.97 | $91.3K |
| 2026-09-30 | Zane Ellen M |
Grant/award | 846 | $70.97 | $60.0K |
| 2026-09-30 | Richie Laurel |
Grant/award | 846 | $70.97 | $60.0K |
| 2026-09-30 | Parker P.w. |
Grant/award | 846 | $70.97 | $60.0K |
| 2026-09-30 | Chytil Kamila K |
Grant/award | 846 | $70.97 | $60.0K |
| 2026-09-30 | Guthrie Roy A |
Grant/award | 846 | $70.97 | $60.0K |
| 2026-09-30 | Ellinger Deborah G |
Grant/award | 846 | $70.97 | $60.0K |
| 2026-08-17 | Casellas Alberto |
Grant/award | 182 | $80.75 | $14.7K |
| 2026-08-17 | Owens Darrell |
Grant/award | 70 | $80.75 | $5.7K |
| 2026-08-17 | Tiliakos Amy |
Grant/award | 49 | $80.75 | $4.0K |
| 2026-08-17 | Guthrie Roy A |
Grant/award | 156 | $80.75 | $12.6K |
| 2026-08-17 | Chytil Kamila K |
Grant/award | 14 | $80.75 | $1.1K |
| 2026-08-17 | Doubles Brian D |
Grant/award | 1,001 | $80.75 | $80.8K |
| 2026-08-17 | Richie Laurel |
Grant/award | 138 | $80.75 | $11.1K |
| 2026-08-17 | Ellinger Deborah G |
Grant/award | 10 | $80.75 | $808 |
| 2026-08-17 | Mothner Jonathan S |
Grant/award | 218 | $80.75 | $17.6K |
| 2026-08-17 | Naylor Jeffrey G |
Grant/award | 203 | $80.75 | $16.4K |
| 2026-08-17 | Gentleman Courtney |
Grant/award | 79 | $80.75 | $6.4K |
| 2026-08-17 | Colao Daniel O |
Grant/award | 14 | $80.75 | $1.1K |
| 2026-08-17 | Aguirre Fernando |
Grant/award | 14 | $80.75 | $1.1K |
| 2026-08-17 | Zane Ellen M |
Grant/award | 14 | $80.75 | $1.1K |
| 2026-08-17 | Parker P.w. |
Grant/award | 14 | $80.75 | $1.1K |
| 2026-08-17 | Howse Curtis |
Grant/award | 182 | $80.75 | $14.7K |
| 2026-08-17 | Alves Paget Leonard |
Grant/award | 157 | $80.75 | $12.7K |
| 2026-08-17 | Coviello Arthur W Jr |
Grant/award | 14 | $80.75 | $1.1K |
| 2026-08-17 | Coviello Arthur W Jr |
Small acquisition | 11 | $80.60 | $887 |
| 2026-08-17 | Wenzel Brian J. Sr. |
Grant/award | 272 | $80.75 | $22.0K |
| 2026-08-17 | Juel Carol |
Grant/award | 218 | $80.75 | $17.6K |
| 2026-08-13 | Casellas Alberto |
Open-market sale |
5,456 | $80.00 | $436.5K |
| 2026-08-13 | Casellas Alberto |
Option exercise |
5,456 | $33.53 | $182.9K |
| 2026-08-03 | Owens Darrell |
Open-market sale |
610 | $76.73 | $46.8K |
| 2026-08-03 | Gentleman Courtney |
Open-market sale |
721 | $76.73 | $55.3K |
| 2026-08-03 | Coviello Arthur W Jr |
Open-market sale |
4,000 | $77.17 | $308.7K |
| 2026-07-31 | Tiliakos Amy |
Shares withheld for tax | 1,738 | $75.79 | $131.7K |
| 2026-07-31 | Owens Darrell |
Shares withheld for tax |
486 | $75.79 | $36.8K |
| 2026-07-31 | Gentleman Courtney |
Shares withheld for tax |
574 | $75.79 | $43.5K |
| 2026-07-28 | Doubles Brian D |
Shares withheld for tax | 2,353 | $77.12 | $181.5K |
| 2026-06-30 | Parker P.w. |
Grant/award | 789 | $76.05 | $60.0K |
| 2026-06-30 | Alves Paget Leonard |
Grant/award | 789 | $76.05 | $60.0K |
| 2026-06-30 | Ellinger Deborah G |
Grant/award | 789 | $76.05 | $60.0K |
| 2026-06-30 | Aguirre Fernando |
Grant/award | 789 | $76.05 | $60.0K |
| 2026-06-30 | Colao Daniel O |
Grant/award | 789 | $76.05 | $60.0K |
| 2026-06-30 | Zane Ellen M |
Grant/award | 789 | $76.05 | $60.0K |
| 2026-06-30 | Chytil Kamila K |
Grant/award | 789 | $76.05 | $60.0K |
| 2026-06-30 | Richie Laurel |
Grant/award | 789 | $76.05 | $60.0K |
| 2026-06-30 | Naylor Jeffrey G |
Grant/award | 1,200 | $76.05 | $91.3K |
| 2026-06-30 | Guthrie Roy A |
Grant/award | 789 | $76.05 | $60.0K |
| 2026-06-30 | Coviello Arthur W Jr |
Grant/award | 789 | $76.05 | $60.0K |
| 2026-05-15 | Aguirre Fernando |
Grant/award | 14 | $71.38 | $999 |
| 2026-05-15 | Howse Curtis |
Grant/award | 181 | $71.38 | $12.9K |
| 2026-05-15 | Owens Darrell |
Grant/award | 74 | $71.38 | $5.3K |
| 2026-05-15 | Wenzel Brian J. Sr. |
Grant/award | 270 | $71.38 | $19.3K |
| 2026-05-15 | Juel Carol |
Grant/award | 217 | $71.38 | $15.5K |
| 2026-05-15 | Gentleman Courtney |
Grant/award | 84 | $71.38 | $6.0K |
| 2026-05-15 | Chytil Kamila K |
Grant/award | 14 | $71.38 | $999 |
| 2026-05-15 | Doubles Brian D |
Grant/award | 1,017 | $71.38 | $72.6K |
Well-known investors holding SYF (13F)
| Investor | Quarter | Shares | Reported value | % of their 13F | Change vs prior quarter |
|---|---|---|---|---|---|
| Harris Associates (Oakmark Funds) | 2026-06-30 | 7,446,335 | $566.3M | 0.75% | Added 60% |
| AQR Capital Management (Cliff Asness) | 2026-06-30 | 3,564,350 | $271.1M | 0.09% | Reduced 21% |
| Two Sigma Investments | 2026-06-30 | 546,167 | $41.5M | 0.03% | Added 65% |
| Millennium Management (Israel Englander) | 2026-06-30 | 306,432 | $23.3M | 0.02% | Reduced 72% |
| Citadel Advisors (Ken Griffin) | 2026-06-30 | 167,889 | $12.8M | 0.01% | Reduced 63% |
| Bridgewater Associates | 2026-06-30 | 153,894 | $11.7M | 0.05% | New position |
| Gotham Asset Management (Joel Greenblatt) | 2026-06-30 | 12,170 | $925.5K | 0.0% | Added 19% |
| D. E. Shaw & Co. | 2026-06-30 | 9,503 | $722.7K | 0.0% | Reduced 58% |
| Semper Augustus (Chris Bloomstran) | 2026-06-30 | 4,437 | $337.4K | 0.04% | No change |