- **Revenue growth**: Q3 purchase volume up 2% YoY to $46 billion, driven by digital, health, and co-branded platforms.
- **Credit strength**: Delinquency rate 4.39% (down 39 bps YoY), net charge-offs 5.16% (down 90 bps YoY).
- **Strategic expansion**: Walmart Pay later launch successful, with 30% of prior credit tightening reversed, 70% potential for future growth.
- **Capital return**: $971 million returned to shareholders in Q3, with $2.1 billion buyback authorization for 2025.

**【CEO Summary Section】**
- **Strong financial performance**: Q3 net earnings of $1.1 billion, ROA of 3.6%, and ROTCE of 30.6%. Purchase volume grew 2% YoY to $46 billion, driven by digital, health, and co-branded platforms.
- **Strategic partnerships**: Expanded with TORO, Regency Furniture, Lowe's, and Dental Intelligence, with Walmart Pay later launch showing early success. Versatile Credit acquisition to enhance embedded finance strategy.
- **Credit actions**: Gradual reversal of 30% of prior tightening, with 70% remaining for future evaluation. Focus on risk-adjusted returns in health and wellness platforms.

**【CFO Financial Commentary】**
- **Financial highlights**: GAAP net income $1.1 billion, ROA 3.6%, ROTCE 30.6%. Purchase volume $46 billion (+2% YoY). Net interest margin 15.62%, driven by higher loan yields and lower funding costs.
- **Credit trends**: Delinquency rate 4.39% (down 39 bps YoY), net charge-offs 5.16% (down 90 bps YoY). Efficiency ratio 32.6%, up 140 bps YoY due to higher expenses and net revenue growth.
- **Outlook**: 2025 guidance includes net interest margin expansion to 15.7%, efficiency ratio 33-33.5%, and other expenses +3% YoY. Capital return of $971 million (86% buybacks, 14% dividends).

**【Q&A Key Highlights】**
- **Revenue guidance**: Lowered due to credit actions and selective consumer spending, but 30% of prior tightening reversed, with 70% potential for future growth.
- **Consumer credit**: Nonprime cohort showing stronger transaction frequency and value, driven by improved credit actions and product offerings.
- **Strategic initiatives**: Walmart Pay later launch outperforming expectations, with plans to expand into health and wellness. Versatile Credit acquisition to enhance embedded finance and SME partnerships.
- **Capital allocation**: CET1 ratio 13.7%, with $2.1 billion share buyback authorization for 2025, focusing on prudent but aggressive deployment.

Synchrony Financial (SYF)-15 Oct 25-2025 Q3 Earnings call transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

SYF

SYF fundamentals

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