**Synchrony Financial Reports Annual Results, Highlights Strategic Developments**
Synchrony Financial (SYF), a consumer financial services company, reported net earnings of $3.6 billion for the year ended December 31, 2025, a 1.5% increase compared to $3.5 billion in the prior year. This growth was primarily driven by a $455 million increase in net interest income, resulting from lower interest expense and a slight 0.5% increase in interest and fees on loans, which totaled $21.7 billion. These positive factors were partially offset by a decrease in other income, largely due to a $1.1 billion gain on the sale of Pets Best in the previous year, and an increase in retailer share arrangements.
The company's loan receivables decreased slightly by 0.9% to $103.8 billion at year-end, reflecting higher payment rates and lower average active accounts, which stood at 70.7 million. Asset quality metrics showed improvement, with over-30 day loan delinquencies decreasing to 4.49% and the net charge-off rate decreasing to 5.65%. The allowance coverage ratio also decreased to 10.06%. The company's funding profile remained stable, with deposits representing 84% of total funding sources, although total deposits decreased slightly to $81.1 billion.
Synchrony continued to actively manage its capital, repurchasing $2.9 billion of its outstanding common stock and paying cash dividends of $1.15 per common share, totaling $427 million. The company also highlighted strategic developments, including the acquisition of Versatile Credit, a multi-source financing platform, and the expansion of its partnership with Amazon. Additionally, Synchrony announced the expansion of its existing Lowe's commercial program, including the acquisition of Lowe's commercial co-branded credit card portfolio, expected to close in the first half of 2026.
Looking ahead, Synchrony anticipates loan receivables to increase in 2026, driven by growth in purchase volume and average active accounts. The company also expects interest and fees on loans to increase, reflecting the continued impact of product, pricing, and policy changes. The net charge-off rate is projected to remain within the long-term target range of 5.5% to 6.0%. The company's outlook is subject to various factors, including customer payment rate trends, consumer spending behavior, benchmark interest rate changes, and regulatory developments.
About Synchrony Financial
Synchrony Financial is a leading consumer financial services company offering a broad suite of digital-enabled credit products, including private label, co-branded, and general purpose credit cards, installment loans, and consumer banking solutions. Serving retail, healthcare, and digital partners across various industries, it provides seamless omnichannel experiences, innovative digital capabilities, and stable funding through FDIC-insured deposits, focusing on customer engagement, loyalty, and growth.
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