Why did SYF's Q4 2024 earnings surprise improve significantly?

Synchrony Financial's (NYSE: SYF) Q4 2024 earnings showed an improvement in net earnings, which rose by 76% year-over-year (Y/Y) to $774 million. This significant increase can be attributed to the following factors:

1. **Net Interest Income Growth**: Synchrony Financial's net interest income grew by 2.8%, surpassing estimates, which contributed to the overall earnings improvement.
2. **Efficiency Ratio Forecast**: The company forecasted an efficiency ratio of 31.5%-32.5% for FY25, indicating a better cost management and operational efficiency, which could have positively impacted net earnings.

In conclusion, Synchrony Financial's Q4 2024 earnings improvement can be attributed to the growth in net interest income and the forecasted efficiency ratio. These factors collectively contribute to the company's enhanced profitability and financial performance.