Synchrony Financial reported strong third-quarter results driven by a return to purchase volume growth and robust credit performance, exceeding expectations and positioning the company for continued risk-adjusted growth.
Purchase volume increased 2% to $46.0 billion, driven by stronger spend trends across all five platforms.
positiveNet earnings increased 37% to $1.1 billion, or $2.86 per diluted share, compared to $789 million, or $1.94 per diluted share in Q3 2024.
positiveNet interest margin increased 58 basis points to 15.62%.
positiveReturn on assets increased 100 basis points to 3.6%, and return on equity increased 5 percentage points to 25.1%.
positiveBook value per share increased 16% to $44.00.
positiveCommon Equity Tier 1 ratio was 13.7%, up from 13.1% in the prior year.
positiveLoan receivables decreased 2% to $100.2 billion, reflecting the continued impact of previous credit actions.
attentionAverage active accounts decreased 3% to 68.3 million.
attentionEfficiency ratio increased 140 basis points to 32.6%.
attentionDeposits decreased 3% or $2.4 billion to $79.9 billion.
attentionLifestyle purchase volume decreased 3%, primarily reflecting lower average active accounts.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.