Form 8-K Synchrony Financial For: Jul 20

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July 20, 2021 6:06 AM EDT

E-mail

Exhibit 99.1


For Immediate Release Synchrony Financial (NYSE: SYF) July 20, 2021

SECOND QUARTER 2021 RESULTS AND KEY METRICS

$78.4B

Loan

Receivables

5.3%

Return on

Assets

17.8%

CET1

Ratio

$521M

Capital

Returned

CEO COMMENTARY

Brian Doubles, Synchrony’s President and Chief Executive Officer, said, “We continue to deliver strong financial results, reflecting the power of our technology-enabled model, the durability of our partner-centric value propositions, and the diversity in our portfolio.

“The hallmarks of our business — including exceptional digital capabilities, advanced data analytics, and our wide breadth of products and services — are key differentiators that enable us to deliver attractive financing solutions and seamless customer experiences, while also addressing our partners' evolving needs.

“Synchrony is very well positioned to continue to win and renew key partnerships and solidify ourselves as a leading provider of one of the industry’s most complete, digitally-enabled consumer payments and financing product suites.”

Synchrony Reported Second Quarter Net Earnings of $1.2 Billion or $2.12 Per Diluted Share

Purchase Volume Growth Accelerated as Consumer Confidence Improved

Continued Strength in Credit Performance, Contributing to a 112% Decrease in Provision for Credit Losses

STAMFORD, Conn. – Synchrony Financial (NYSE: SYF) today announced second quarter 2021 net earnings of $1.2 billion, or $2.12 per diluted share, compared to $48 million, or $0.06 per diluted share in the second quarter 2020.

KEY OPERATING & FINANCIAL METRICS*

RECORD NET EARNINGS DRIVEN BY A STRONG CONSUMER, AS REFLECTED IN PURCHASE VOLUME GROWTH AND CREDIT QUALITY

•Purchase volume increased 35% to $42.1 billion

•Loan receivables increased $0.1 billion to $78.4 billion

•Average active accounts increased 2% to 65.8 million

•New accounts increased 58% to 6.3 million

•Net interest margin increased 25 basis points to 13.78%

•Efficiency ratio increased 330 basis points to 39.6%

•Net earnings of $1.2 billion, or $2.12 per diluted share, compared to $48 million, or $0.06 per diluted share

•Return on assets increased 5 percentage points to 5.3%

•Return on equity increased 35 percentage points to 36.5%

CFO COMMENTARY

BUSINESS AND FINANCIAL RESULTS FOR

THE SECOND QUARTER OF 2021*

Brian Wenzel, Synchrony’s Executive Vice President and Chief Financial Officer, said, “Purchase volume increased significantly during the second quarter 2021, reflecting the impacts of stimulus, the lifting of remaining government restrictions and increased consumer confidence.

“Customer payment rates continue to remain elevated, however, due to the impact of government stimulus and industry-wide forbearance measures. While this hindered loan receivables growth and yield, it supported continued strength in credit performance and led to lower provision for credit losses.

“We remain focused on optimizing the key drivers of our business to drive sustainable growth, achieve strong returns, and generate and return considerable capital to our shareholders over the long-term.”

BUSINESS HIGHLIGHTS

CONTINUED TO WIN AND RENEW KEY PARTNERSHIPS

•Announced a multi-year renewal with TJX Companies, Inc., further extending our 10+ year partnership, and renewed 10 additional programs, including Shop HQ, Mitchell Gold Co., Daniels, and Sutherlands

•Added 4 new programs, including JCB and Ochsner Health

FINANCIAL HIGHLIGHTS

EARNINGS GROWTH DRIVEN BY STRONG CONSUMER AS CREDIT IMPROVEMENT OFFSETS LOWER YIELD

•Interest and fees on loans decreased 6% to $3.6 billion

•Net interest income decreased $84 million, or 2%, to $3.3 billion, mainly due to lower finance charges and late fees.

•Retailer share arrangements increased $233 million, or 30%, to $1.0 billion, reflecting the decrease in the provision for credit losses, including lower net charge-offs and program performance.

•Provision for credit losses decreased $1.9 billion, or 112%, to $(194) million, driven by an $878 million reserve reduction and lower net charge-offs.

•Other income decreased $6 million, or 6%, to $89 million, largely driven by higher program loyalty costs from higher purchase volume.

•Other expense decreased $38 million, or 4%, to $948 million, mainly driven by lower operational losses, partially offset by higher employee, marketing and business development, and information processing costs.

•Net earnings increased to $1.2 billion compared to $48 million.

CREDIT QUALITY

CREDIT PERFORMANCE CONTINUED TO BE DRIVEN BY A STRONG CONSUMER

•Loans 30+ days past due as a percentage of total period-end loan receivables were 2.11% compared to 3.13% last year.

•Net charge-offs as a percentage of total average loan receivables were 3.57% compared to 5.35% last year.

•The allowance for credit losses as a percentage of total period-end loan receivables was 11.51%.

SALES PLATFORM HIGHLIGHTS

DIVERSITY ACROSS OUR PLATFORMS CONTINUES TO PROVIDE RESILIENCE

•Home & Auto period-end loan receivables increased 1% as purchase volume increased 25%, reflecting continued strength in our home partners and merchants. Interest and fees on loans decreased 6%, driven primarily by lower finance charge yield as payment rates remain elevated, and average active accounts decreased 1%.

•Digital period-end loan receivables increased 2% and purchase volume increased 30%, reflecting strength in digital-based partners who have continued to be positively impacted by the effects of government restrictions on in-person retail experiences. Interest and fees on loans decreased 2%, driven primarily by lower finance charge yield as payment rates remain elevated, while average active accounts increased 5%.

•Diversified & Value period-end loan receivables decreased 5% reflecting the impact of store closures in 2020, as well as prior year government restrictions and elevated payment rates. Purchase volume increased 51%, reflecting the lifting of government restrictions on in-person retail experiences. Interest and fees on loans decreased 14%, driven primarily by lower loan receivables, and average active accounts increased 4%.

•Health & Wellness period-end loan receivables increased 3% and purchase volume increased 53% reflecting higher consumer confidence to undertake elective procedures, as well as the lifting of government restrictions on in-person experiences. Interest and fees on loans decreased 2%, driven primarily by lower finance charge yield as payment rates remain elevated, and average active accounts decreased 6%.

•Lifestyle period-end loan receivables and purchase volume both increased 9%, reflecting continued strength in power sports. Interest and fees on loans increased 6%, driven primarily by loan receivables growth, and average active accounts decreased 1%.

BALANCE SHEET, LIQUIDITY & CAPITAL

FUNDING, CAPITAL & LIQUIDITY REMAIN ROBUST

•Period-end loan receivables increased to $78.4 billion compared to $78.3 billion; purchase volume increased 35% and average active accounts increased 2%.

•Deposits decreased $4.3 billion, or 7%, to $59.8 billion and comprised 81% of funding.

•Total liquidity (liquid assets and undrawn credit facilities) of $21.2 billion, or 23.0% of total assets.

•Total capital returned of $521 million, reflecting $393 million of share repurchases and $128 million of common stock dividends.

•The Company has elected to defer the regulatory capital effects of CECL for two years; the estimated Common Equity Tier 1 ratio was 17.8% compared to 15.3%, and the estimated Tier 1 Capital ratio was 18.7% compared to 16.3%, reflecting our strong capital generation capabilities.

*All comparisons are for the second quarter of 2021 compared to the second quarter of 2020, unless otherwise noted.

CORRESPONDING FINANCIAL TABLES AND INFORMATION

No representation is made that the information in this news release is complete. Investors are encouraged to review the foregoing summary and discussion of Synchrony Financial's earnings and financial condition in conjunction with the detailed financial tables and information that follow and the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, as filed February 11, 2021, and the Company’s forthcoming Quarterly Report on Form 10-Q for the quarter ended June 30, 2021. The detailed financial tables and other information are also available on the Investor Relations page of the Company’s website at www.investors.synchronyfinancial.com. This information is also furnished in a Current Report on Form 8-K filed with the SEC today.

CONFERENCE CALL AND WEBCAST

On Tuesday, July 20, 2021, at 8:00 a.m. Eastern Time, Brian Doubles, President and Chief Executive Officer, and Brian Wenzel Sr., Executive Vice President and Chief Financial Officer, will host a conference call to review the financial results and outlook for certain business drivers. The conference call can be accessed via an audio webcast through the Investor Relations page on the Synchrony Financial corporate website, www.investors.synchronyfinancial.com, under Events and Presentations. A replay will also be available on the website.

ABOUT SYNCHRONY FINANCIAL

Synchrony (NYSE: SYF) is a premier consumer financial services company. We deliver a wide range of specialized financing programs, as well as innovative consumer banking products, across key industries including digital, retail, home, auto, travel, health and pet. Synchrony enables our partners to grow sales and loyalty with consumers. We are one of the largest issuers of private label credit cards in the United States; we also offer co-branded products, installment loans and consumer financing products for small- and medium-sized businesses, as well as healthcare providers.

Synchrony is changing what’s possible through our digital capabilities, deep industry expertise, actionable data insights, frictionless customer experience and customized financing solutions.

For more information, visit www.synchrony.com and Twitter: @Synchrony.


Investor Relations			Media Relations
Kathryn Miller			Sue Bishop
(203) 585-6291			(203) 585-2802

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This news release contains certain forward-looking statements as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the "safe harbor" created by those sections. Forward-looking statements may be identified by words such as "expects," "intends," "anticipates," "plans," "believes," "seeks," "targets," "outlook," "estimates," "will," "should," "may" or words of similar meaning, but these words are not the exclusive means of identifying forward-looking statements. Forward-looking statements are based on management's current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, actual results could differ materially from those indicated in these forward-looking statements. Factors that could cause actual results to differ materially include global political, economic, business, competitive, market, regulatory and other factors and risks, such as: the impact of macroeconomic conditions and whether industry trends we have identified develop as anticipated, including the future impacts of the novel coronavirus disease (“COVID-19”) outbreak and measures taken in response thereto for which future developments are highly uncertain and difficult to predict; retaining existing partners and attracting new partners, concentration of our revenue in a small number of partners, and promotion and support of our products by our partners; cyber-attacks or other security breaches; disruptions in the operations of our and our outsourced partners' computer systems and data centers; the financial performance of our partners; the sufficiency of our allowance for credit losses and the accuracy of the assumptions or estimates used in preparing our financial statements, including those related to the CECL accounting guidance; higher borrowing costs and adverse financial market conditions impacting our funding and liquidity, and any reduction in our credit ratings; our ability to grow our deposits in the future; damage to our reputation; our ability to securitize our loan receivables, occurrence of an early amortization of our securitization facilities, loss of the right to service or subservice our securitized loan receivables, and lower payment rates on our securitized loan receivables; changes in market interest rates and the impact of any margin compression; effectiveness of our risk management processes and procedures, reliance on models which may be inaccurate or misinterpreted, our ability to manage our credit risk; our ability to offset increases in our costs in retailer share arrangements; competition in the consumer finance industry; our concentration in the U.S. consumer credit market; our ability to successfully develop and commercialize new or enhanced products and services; our ability to realize the value of acquisitions and strategic investments; reductions in interchange fees; fraudulent activity; failure of third parties to provide various services that are important to our operations; international risks and compliance and regulatory risks and costs associated with international operations; alleged infringement of intellectual property rights of others and our ability to protect our intellectual property; litigation and regulatory actions; our ability to attract, retain and motivate key officers and employees; tax legislation initiatives or challenges to our tax positions and/or interpretations, and state sales tax rules and regulations; regulation, supervision, examination and enforcement of our business by governmental authorities, the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act and other legislative and regulatory developments and the impact of the Consumer Financial Protection Bureau’s regulation of our business; impact of capital adequacy rules and liquidity requirements; restrictions that limit our ability to pay dividends and repurchase our common stock, and restrictions that limit the Synchrony Bank’s ability to pay dividends to us; regulations relating to privacy, information security and data protection; use of third-party vendors and ongoing third-party business relationships; and failure to comply with anti-money laundering and anti-terrorism financing laws.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

For the reasons described above, we caution you against relying on any forward-looking statements, which should also be read in conjunction with the other cautionary statements that are included elsewhere in this news release and in our public filings, including under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2020, as filed on February 11, 2021. You should not consider any list of such factors to be an exhaustive statement of all the risks, uncertainties, or potentially inaccurate assumptions that could cause our current expectations or beliefs to change. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as otherwise may be required by law.

NON-GAAP MEASURES

The information provided herein includes measures we refer to as "tangible common equity", and certain “CECL fully phased-in" capital measures, which are not prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). For a reconciliation of these non-GAAP measures to the most directly comparable GAAP measures, please see the detailed financial tables and information that follow. For a statement regarding the usefulness of these measures to investors, please see the Company's Current Report on Form 8-K filed with the SEC today.

Exhibit 99.2


SYNCHRONY FINANCIAL
FINANCIAL SUMMARY
(unaudited, in millions, except per share statistics)
	Quarter Ended														Six Months Ended
	Jun 30, 2021		Mar 31, 2021		Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		2Q'21 vs. 2Q'20				Jun 30, 2021		Jun 30, 2020		YTD'21 vs. YTD'20
EARNINGS
Net interest income	$	3,312	$	3,439	$	3,659	$	3,457	$	3,396	$	(84)	(2.5)	%	$	6,751	$	7,286	$	(535)	(7.3)	%
Retailer share arrangements	(1,006)		(989)		(1,047)		(899)		(773)		(233)		30.1	%	(1,995)		(1,699)		(296)		17.4	%

Provision for credit losses	(194)		334		750		1,210		1,673		(1,867)		(111.6)	%	140		3,350		(3,210)		(95.8)	%
Net interest income, after retailer share arrangements and provision for credit losses	2,500		2,116		1,862		1,348		950		1,550		163.2	%	4,616		2,237		2,379		106.3	%
Other income	89		131		82		131		95		(6)		(6.3)	%	220		192		28		14.6	%
Other expense	948		932		1,000		1,067		986		(38)		(3.9)	%	1,880		1,988		(108)		(5.4)	%
Earnings before provision for income taxes	1,641		1,315		944		412		59		1,582		NM		2,956		441		2,515		NM
Provision for income taxes	399		290		206		99		11		388		NM		689		107		582		NM
Net earnings	$	1,242	$	1,025	$	738	$	313	$	48	$	1,194	NM		$	2,267	$	334	$	1,933	NM
Net earnings available to common stockholders	$	1,232	$	1,014	$	728	$	303	$	37	$	1,195	NM		$	2,246	$	312	$	1,934	NM



COMMON SHARE STATISTICS
Basic EPS	$	2.13	$	1.74	$	1.25	$	0.52	$	0.06	$	2.07	NM		$	3.87	$	0.52	$	3.35	NM
Diluted EPS	$	2.12	$	1.73	$	1.24	$	0.52	$	0.06	$	2.06	NM		$	3.84	$	0.52	$	3.32	NM

Dividend declared per share	$	0.22	$	0.22	$	0.22	$	0.22	$	0.22	$	—	—	%	$	0.44	$	0.44	$	—	—	%
Common stock price	$	48.52	$	40.66	$	34.71	$	26.17	$	22.16	$	26.36	119.0	%	$	48.52	$	22.16	$	26.36	119.0	%
Book value per share	$	23.48	$	21.86	$	20.49	$	19.47	$	19.13	$	4.35	22.7	%	$	23.48	$	19.13	$	4.35	22.7	%
Tangible common equity per share(1)	$	19.64	$	17.95	$	16.72	$	15.75	$	15.28	$	4.36	28.5	%	$	19.64	$	15.28	$	4.36	28.5	%

Beginning common shares outstanding	581.1		584.0		583.8		583.7		583.2		(2.1)		(0.4)	%	584.0		615.9		(31.9)		(5.2)	%
Issuance of common shares	—		—		—		—		—		—		—	%	—		—		—		—	%
Stock-based compensation	1.0		2.2		0.2		0.1		0.5		0.5		100.0	%	3.2		1.4		1.8		128.6	%
Shares repurchased	(8.7)		(5.1)		—		—		—		(8.7)		NM		(13.8)		(33.6)		19.8		(58.9)	%
Ending common shares outstanding	573.4		581.1		584.0		583.8		583.7		(10.3)		(1.8)	%	573.4		583.7		(10.3)		(1.8)	%

Weighted average common shares outstanding	577.2		583.3		583.9		583.8		583.7		(6.5)		(1.1)	%	580.2		594.3		(14.1)		(2.4)	%
Weighted average common shares outstanding (fully diluted)	581.7		587.5		586.6		584.8		584.4		(2.7)		(0.5)	%	584.6		595.9		(11.3)		(1.9)	%

(1) Tangible Common Equity ("TCE") is a non-GAAP measure. For corresponding reconciliation of TCE to a GAAP financial measure, see Reconciliation of Non-GAAP Measures and Calculations of Regulatory Measures.


SYNCHRONY FINANCIAL
SELECTED METRICS
(unaudited, $ in millions)
	Quarter Ended																			Six Months Ended
	Jun 30, 2021			Mar 31, 2021			Dec 31, 2020			Sep 30, 2020			Jun 30, 2020			2Q'21 vs. 2Q'20				Jun 30, 2021			Jun 30, 2020			YTD'21 vs. YTD'20
PERFORMANCE METRICS
Return on assets(1)	5.3		%	4.3		%	3.1		%	1.3		%	0.2		%			5.1	%	4.8		%	0.7		%			4.1	%
Return on equity(2)	36.5		%	31.8		%	23.6		%	10.3		%	1.6		%			34.9	%	34.2		%	5.4		%			28.8	%
Return on tangible common equity(3)	46.3		%	40.8		%	30.4		%	13.1		%	1.6		%			44.7	%	43.6		%	6.7		%			36.9	%



Net interest margin(4)	13.78		%	13.98		%	14.64		%	13.80		%	13.53		%			0.25	%	13.88		%	14.35		%			(0.47)	%
Efficiency ratio(5)	39.6		%	36.1		%	37.1		%	39.7		%	36.3		%			3.3	%	37.8		%	34.4		%			3.4	%
Other expense as a % of average loan receivables, including held for sale	4.95		%	4.82		%	5.01		%	5.44		%	5.04		%			(0.09)	%	4.89		%	4.90		%			(0.01)	%
Effective income tax rate	24.3		%	22.1		%	21.8		%	24.0		%	18.6		%			5.7	%	23.3		%	24.3		%			(1.0)	%


CREDIT QUALITY METRICS
Net charge-offs as a % of average loan receivables, including held for sale	3.57		%	3.62		%	3.16		%	4.42		%	5.35		%			(1.78)	%	3.59		%	5.35		%			(1.76)	%
30+ days past due as a % of period-end loan receivables(6)	2.11		%	2.83		%	3.07		%	2.67		%	3.13		%			(1.02)	%	2.11		%	3.13		%			(1.02)	%
90+ days past due as a % of period-end loan receivables(6)	1.00		%	1.52		%	1.40		%	1.24		%	1.77		%			(0.77)	%	1.00		%	1.77		%			(0.77)	%
Net charge-offs	$	684		$	699		$	631		$	866		$	1,046		$	(362)	(34.6)	%	$	1,383		$	2,171		$	(788)	(36.3)	%
Loan receivables delinquent over 30 days(6)	$	1,653		$	2,175		$	2,514		$	2,100		$	2,453		$	(800)	(32.6)	%	$	1,653		$	2,453		$	(800)	(32.6)	%
Loan receivables delinquent over 90 days(6)	$	784		$	1,170		$	1,143		$	973		$	1,384		$	(600)	(43.4)	%	$	784		$	1,384		$	(600)	(43.4)	%

Allowance for credit losses (period-end)	$	9,023		$	9,901		$	10,265		$	10,146		$	9,802		$	(779)	(7.9)	%	$	9,023		$	9,802		$	(779)	(7.9)	%
Allowance coverage ratio(7)	11.51		%	12.88		%	12.54		%	12.92		%	12.52		%			(1.01)	%	11.51		%	12.52		%			(1.01)	%

BUSINESS METRICS
Purchase volume(8)(9)	$	42,121		$	34,749		$	39,874		$	36,013		$	31,155		$	10,966	35.2	%	$	76,870		$	63,197		$	13,673	21.6	%
Period-end loan receivables	$	78,374		$	76,858		$	81,867		$	78,521		$	78,313		$	61	0.1	%	$	78,374		$	78,313		$	61	0.1	%
Credit cards	$	74,429		$	73,244		$	78,455		$	75,204		$	75,353		$	(924)	(1.2)	%	$	74,429		$	75,353		$	(924)	(1.2)	%
Consumer installment loans	$	2,507		$	2,319		$	2,125		$	1,987		$	1,779		$	728	40.9	%	$	2,507		$	1,779		$	728	40.9	%
Commercial credit products	$	1,379		$	1,248		$	1,250		$	1,270		$	1,140		$	239	21.0	%	$	1,379		$	1,140		$	239	21.0	%
Other	$	59		$	47		$	37		$	60		$	41		$	18	43.9	%	$	59		$	41		$	18	43.9	%
Average loan receivables, including held for sale	$	76,821		$	78,358		$	79,452		$	78,005		$	78,697		$	(1,876)	(2.4)	%	$	77,585		$	81,563		$	(3,978)	(4.9)	%
Period-end active accounts (in thousands)(9)(10)	66,892			65,219			68,540			64,800			63,430			3,462		5.5	%	66,892			63,430			3,462		5.5	%
Average active accounts (in thousands)(9)(10)	65,810			66,280			66,261			64,270			64,836			974		1.5	%	66,163			68,401			(2,238)		(3.3)	%

LIQUIDITY
Liquid assets
Cash and equivalents	$	11,117		$	16,620		$	11,524		$	13,552		$	16,344		$	(5,227)	(32.0)	%	$	11,117		$	16,344		$	(5,227)	(32.0)	%
Total liquid assets	$	16,297		$	22,636		$	18,321		$	21,402		$	22,352		$	(6,055)	(27.1)	%	$	16,297		$	22,352		$	(6,055)	(27.1)	%
Undrawn credit facilities
Undrawn credit facilities	$	4,900		$	5,400		$	5,400		$	5,400		$	5,650		$	(750)	(13.3)	%	$	4,900		$	5,650		$	(750)	(13.3)	%
Total liquid assets and undrawn credit facilities	$	21,197		$	28,036		$	23,721		$	26,802		$	28,002		$	(6,805)	(24.3)	%	$	21,197		$	28,002		$	(6,805)	(24.3)	%
Liquid assets % of total assets	17.71		%	23.62		%	19.09		%	22.37		%	23.15		%			(5.44)	%	17.71		%	23.15		%			(5.44)	%
Liquid assets including undrawn credit facilities % of total assets	23.04		%	29.25		%	24.72		%	28.02		%	29.00		%			(5.96)	%	23.04		%	29.00		%			(5.96)	%



(1) Return on assets represents net earnings as a percentage of average total assets.
(2) Return on equity represents net earnings as a percentage of average total equity.
(3) Return on tangible common equity represents net earnings available to common stockholders as a percentage of average tangible common equity. Tangible common equity ("TCE") is a non-GAAP measure. For corresponding reconciliation of TCE to a GAAP financial measure, see Reconciliation of Non-GAAP Measures and Calculations of Regulatory Measures.
(4) Net interest margin represents net interest income divided by average interest-earning assets.
(5) Efficiency ratio represents (i) other expense, divided by (ii) net interest income, plus other income, less retailer share arrangements.
(6) Based on customer statement-end balances extrapolated to the respective period-end date.
(7) Allowance coverage ratio represents allowance for credit losses divided by total period-end loan receivables.
(8) Purchase volume, or net credit sales, represents the aggregate amount of charges incurred on credit cards or other credit product accounts less returns during the period.
(9) Includes activity and accounts associated with loan receivables held for sale.
(10) Active accounts represent credit card or installment loan accounts on which there has been a purchase, payment or outstanding balance in the current month.


SYNCHRONY FINANCIAL
STATEMENTS OF EARNINGS
(unaudited, $ in millions)
	Quarter Ended														Six Months Ended
	Jun 30, 2021		Mar 31, 2021		Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		2Q'21 vs. 2Q'20				Jun 30, 2021		Jun 30, 2020		YTD'21 vs. YTD'20
Interest income:
Interest and fees on loans	$	3,567	$	3,732	$	3,981	$	3,821	$	3,808	$	(241)	(6.3)	%	$	7,299	$	8,148	$	(849)	(10.4)	%
Interest on cash and debt securities	11		10		12		16		22		(11)		(50.0)	%	21		89		(68)		(76.4)	%
Total interest income	3,578		3,742		3,993		3,837		3,830		(252)		(6.6)	%	7,320		8,237		(917)		(11.1)	%

Interest expense:
Interest on deposits	146		170		200		245		293		(147)		(50.2)	%	316		649		(333)		(51.3)	%
Interest on borrowings of consolidated securitization entities	44		51		52		53		59		(15)		(25.4)	%	95		132		(37)		(28.0)	%
Interest on senior unsecured notes	76		82		82		82		82		(6)		(7.3)	%	158		170		(12)		(7.1)	%

Total interest expense	266		303		334		380		434		(168)		(38.7)	%	569		951		(382)		(40.2)	%

Net interest income	3,312		3,439		3,659		3,457		3,396		(84)		(2.5)	%	6,751		7,286		(535)		(7.3)	%

Retailer share arrangements	(1,006)		(989)		(1,047)		(899)		(773)		(233)		30.1	%	(1,995)		(1,699)		(296)		17.4	%


Provision for credit losses	(194)		334		750		1,210		1,673		(1,867)		(111.6)	%	140		3,350		(3,210)		(95.8)	%
Net interest income, after retailer share arrangements and provision for credit losses	2,500		2,116		1,862		1,348		950		1,550		163.2	%	4,616		2,237		2,379		106.3	%

Other income:
Interchange revenue	223		171		185		172		134		89		66.4	%	394		295		99		33.6	%
Debt cancellation fees	66		69		72		68		69		(3)		(4.3)	%	135		138		(3)		(2.2)	%
Loyalty programs	(247)		(179)		(202)		(155)		(134)		(113)		84.3	%	(426)		(292)		(134)		45.9	%
Other	47		70		27		46		26		21		80.8	%	117		51		66		129.4	%
Total other income	89		131		82		131		95		(6)		(6.3)	%	220		192		28		14.6	%

Other expense:
Employee costs	359		364		347		382		327		32		9.8	%	723		651		72		11.1	%
Professional fees	189		190		186		187		189		—		—	%	379		386		(7)		(1.8)	%
Marketing and business development	114		95		139		107		91		23		25.3	%	209		202		7		3.5	%
Information processing	137		131		128		125		116		21		18.1	%	268		239		29		12.1	%
Other	149		152		200		266		263		(114)		(43.3)	%	301		510		(209)		(41.0)	%
Total other expense	948		932		1,000		1,067		986		(38)		(3.9)	%	1,880		1,988		(108)		(5.4)	%

Earnings before provision for income taxes	1,641		1,315		944		412		59		1,582		NM		2,956		441		2,515		NM
Provision for income taxes	399		290		206		99		11		388		NM		689		107		582		NM
Net earnings	$	1,242	$	1,025	$	738	$	313	$	48	$	1,194	NM		$	2,267	$	334	$	1,933	NM

Net earnings available to common stockholders	$	1,232	$	1,014	$	728	$	303	$	37	$	1,195	NM		$	2,246	$	312	$	1,934	NM


SYNCHRONY FINANCIAL
STATEMENTS OF FINANCIAL POSITION
(unaudited, $ in millions)
	Quarter Ended
	Jun 30, 2021		Mar 31, 2021		Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Jun 30, 2021 vs. Jun 30, 2020
Assets
Cash and equivalents	$	11,117	$	16,620	$	11,524	$	13,552	$	16,344	$	(5,227)	(32.0)	%
Debt securities	5,728		6,550		7,469		8,432		6,623		(895)		(13.5)	%
Loan receivables:
Unsecuritized loans held for investment	55,994		53,823		56,472		52,613		52,629		3,365		6.4	%
Restricted loans of consolidated securitization entities	22,380		23,035		25,395		25,908		25,684		(3,304)		(12.9)	%
Total loan receivables	78,374		76,858		81,867		78,521		78,313		61		0.1	%
Less: Allowance for credit losses	(9,023)		(9,901)		(10,265)		(10,146)		(9,802)		779		(7.9)	%
Loan receivables, net	69,351		66,957		71,602		68,375		68,511		840		1.2	%
Loan receivables held for sale	—		23		5		4		4		(4)		(100.0)	%
Goodwill	1,105		1,104		1,078		1,078		1,078		27		2.5	%
Intangible assets, net	1,098		1,169		1,125		1,091		1,166		(68)		(5.8)	%
Other assets	3,618		3,431		3,145		3,126		2,818		800		28.4	%
Total assets	$	92,017	$	95,854	$	95,948	$	95,658	$	96,544	$	(4,527)	(4.7)	%

Liabilities and Equity
Deposits:
Interest-bearing deposit accounts	$	59,500	$	62,419	$	62,469	$	63,195	$	63,857	$	(4,357)	(6.8)	%
Non-interest-bearing deposit accounts	341		342		313		298		291		50		17.2	%
Total deposits	59,841		62,761		62,782		63,493		64,148		(4,307)		(6.7)	%
Borrowings:
Borrowings of consolidated securitization entities	6,987		7,193		7,810		7,809		8,109		(1,122)		(13.8)	%

Senior unsecured notes	6,470		7,967		7,965		7,962		7,960		(1,490)		(18.7)	%

Total borrowings	13,457		15,160		15,775		15,771		16,069		(2,612)		(16.3)	%
Accrued expenses and other liabilities	4,522		4,494		4,690		4,295		4,428		94		2.1	%
Total liabilities	77,820		82,415		83,247		83,559		84,645		(6,825)		(8.1)	%
Equity:
Preferred stock	734		734		734		734		734		—		—	%
Common stock	1		1		1		1		1		—		—	%
Additional paid-in capital	9,620		9,592		9,570		9,552		9,532		88		0.9	%
Retained earnings	12,560		11,470		10,621		10,024		9,852		2,708		27.5	%
Accumulated other comprehensive income (loss)	(56)		(56)		(51)		(31)		(37)		(19)		51.4	%
Treasury stock	(8,662)		(8,302)		(8,174)		(8,181)		(8,183)		(479)		5.9	%
Total equity	14,197		13,439		12,701		12,099		11,899		2,298		19.3	%
Total liabilities and equity	$	92,017	$	95,854	$	95,948	$	95,658	$	96,544	$	(4,527)	(4.7)	%


SYNCHRONY FINANCIAL
AVERAGE BALANCES, NET INTEREST INCOME AND NET INTEREST MARGIN
(unaudited, $ in millions)

	Quarter Ended
	Jun 30, 2021						Mar 31, 2021						Dec 31, 2020						Sep 30, 2020						Jun 30, 2020
			Interest		Average				Interest		Average				Interest		Average				Interest		Average				Interest		Average
	Average		Income/		Yield/		Average		Income/		Yield/		Average		Income/		Yield/		Average		Income/		Yield/		Average		Income/		Yield/
	Balance		Expense		Rate		Balance		Expense		Rate		Balance		Expense		Rate		Balance		Expense		Rate		Balance		Expense		Rate
Assets
Interest-earning assets:
Interest-earning cash and equivalents	$	13,584	$	4	0.12	%	$	14,610	$	4	0.11	%	$	11,244	$	4	0.14	%	$	13,664	$	4	0.12	%	$	15,413	$	3	0.08	%
Securities available for sale	5,988		7		0.47	%	6,772		6		0.36	%	8,706		8		0.37	%	7,984		12		0.60	%	6,804		19		1.12	%

Loan receivables, including held for sale:
Credit cards	72,989		3,484		19.15	%	74,865		3,657		19.81	%	76,039		3,908		20.45	%	74,798		3,752		19.96	%	75,942		3,740		19.81	%
Consumer installment loans	2,417		59		9.79	%	2,219		53		9.69	%	2,057		50		9.67	%	1,892		46		9.67	%	1,546		37		9.63	%
Commercial credit products	1,363		23		6.77	%	1,231		21		6.92	%	1,293		23		7.08	%	1,238		22		7.07	%	1,150		30		10.49	%
Other	52		1		NM		43		1		NM		63		—		—	%	77		1		NM		59		1		NM
Total loan receivables, including held for sale	76,821		3,567		18.62	%	78,358		3,732		19.32	%	79,452		3,981		19.93	%	78,005		3,821		19.49	%	78,697		3,808		19.46	%
Total interest-earning assets	96,393		3,578		14.89	%	99,740		3,742		15.22	%	99,402		3,993		15.98	%	99,653		3,837		15.32	%	100,914		3,830		15.26	%

Non-interest-earning assets:
Cash and due from banks	1,559						1,635						1,525						1,489						1,486
Allowance for credit losses	(9,801)						(10,225)						(10,190)						(9,823)						(9,221)
Other assets	5,238						5,305						5,228						5,021						4,779
Total non-interest-earning assets	(3,004)						(3,285)						(3,437)						(3,313)						(2,956)

Total assets	$	93,389					$	96,455					$	95,965					$	96,340					$	97,958

Liabilities
Interest-bearing liabilities:
Interest-bearing deposit accounts	$	60,761	$	146	0.96	%	$	62,724	$	170	1.10	%	$	62,800	$	200	1.27	%	$	63,569	$	245	1.53	%	$	64,298	$	293	1.83	%
Borrowings of consolidated securitization entities	7,149		44		2.47	%	7,694		51		2.69	%	7,809		52		2.65	%	8,057		53		2.62	%	8,863		59		2.68	%

Senior unsecured notes	7,276		76		4.19	%	7,965		82		4.18	%	7,963		82		4.10	%	7,960		82		4.10	%	7,958		82		4.14	%

Total interest-bearing liabilities	75,186		266		1.42	%	78,383		303		1.57	%	78,572		334		1.69	%	79,586		380		1.90	%	81,119		434		2.15	%

Non-interest-bearing liabilities
Non-interest-bearing deposit accounts	349						346						308						307						309
Other liabilities	4,199						4,655						4,663						4,308						4,349
Total non-interest-bearing liabilities	4,548						5,001						4,971						4,615						4,658

Total liabilities	79,734						83,384						83,543						84,201						85,777

Equity
Total equity	13,655						13,071						12,422						12,139						12,181

Total liabilities and equity	$	93,389					$	96,455					$	95,965					$	96,340					$	97,958
Net interest income			$	3,312					$	3,439					$	3,659					$	3,457					$	3,396

Interest rate spread(1)					13.47	%					13.65	%					14.29	%					13.42	%					13.11	%
Net interest margin(2)					13.78	%					13.98	%					14.64	%					13.80	%					13.53	%



(1) Interest rate spread represents the difference between the yield on total interest-earning assets and the rate on total interest-bearing liabilities.
(2) Net interest margin represents net interest income divided by average interest-earning assets.



SYNCHRONY FINANCIAL
AVERAGE BALANCES, NET INTEREST INCOME AND NET INTEREST MARGIN
(unaudited, $ in millions)

	Six Months Ended Jun 30, 2021						Six Months Ended Jun 30, 2020
			Interest		Average				Interest		Average
	Average		Income/		Yield/		Average		Income/		Yield/
	Balance		Expense		Rate		Balance		Expense		Rate
Assets
Interest-earning assets:
Interest-earning cash and equivalents	$	14,094	$	8	0.11	%	$	14,158	$	45	0.64	%
Securities available for sale	6,378		13		0.41	%	6,379		44		1.39	%

Loan receivables, including held for sale:
Credit cards	73,921		7,141		19.48	%	78,830		8,012		20.44	%
Consumer installment loans	2,319		112		9.74	%	1,489		72		9.72	%
Commercial credit products	1,297		44		6.84	%	1,196		63		10.59	%
Other	48		2		8.40	%	48		1		4.19	%
Total loan receivables, including held for sale	77,585		7,299		18.97	%	81,563		8,148		20.09	%
Total interest-earning assets	98,057		7,320		15.05	%	102,100		8,237		16.22	%

Non-interest-earning assets:
Cash and due from banks	1,597						1,468
Allowance for loan losses	(10,012)						(8,965)
Other assets	5,272						4,737
Total non-interest-earning assets	(3,143)						(2,760)

Total assets	$	94,914					$	99,340

Liabilities
Interest-bearing liabilities:
Interest-bearing deposit accounts	$	61,737	$	316	1.03	%	$	64,332	$	649	2.03	%
Borrowings of consolidated securitization entities	7,420		95		2.58	%	9,425		132		2.82	%

Senior unsecured notes	7,619		158		4.18	%	8,382		170		4.08	%

Total interest-bearing liabilities	76,776		569		1.49	%	82,139		951		2.33	%

Non-interest-bearing liabilities
Non-interest-bearing deposit accounts	348						304
Other liabilities	4,425						4,511
Total non-interest-bearing liabilities	4,773						4,815

Total liabilities	81,549						86,954

Equity
Total equity	13,365						12,386

Total liabilities and equity	$	94,914					$	99,340
Net interest income			$	6,751					$	7,286

Interest rate spread(1)					13.56	%					13.89	%
Net interest margin(2)					13.88	%					14.35	%

(1) Interest rate spread represents the difference between the yield on total interest-earning assets and the rate on total interest-bearing liabilities.
(2) Net interest margin represents net interest income divided by average interest-earning assets.


SYNCHRONY FINANCIAL
BALANCE SHEET STATISTICS
(unaudited, $ in millions, except per share statistics)

	Quarter Ended
	Jun 30, 2021			Mar 31, 2021			Dec 31, 2020			Sep 30, 2020			Jun 30, 2020			Jun 30, 2021 vs. Jun 30, 2020
BALANCE SHEET STATISTICS
Total common equity	$	13,463		$	12,705		$	11,967		$	11,365		$	11,165		$	2,298	20.6	%
Total common equity as a % of total assets	14.63		%	13.25		%	12.47		%	11.88		%	11.56		%			3.07	%

Tangible assets	$	89,814		$	93,581		$	93,745		$	93,489		$	94,300		$	(4,486)	(4.8)	%
Tangible common equity(1)	$	11,260		$	10,432		$	9,764		$	9,196		$	8,921		$	2,339	26.2	%
Tangible common equity as a % of tangible assets(1)	12.54		%	11.15		%	10.42		%	9.84		%	9.46		%			3.08	%
Tangible common equity per share(1)	$	19.64		$	17.95		$	16.72		$	15.75		$	15.28		$	4.36	28.5	%

REGULATORY CAPITAL RATIOS(2)(3)
	Basel III - CECL Transition
Total risk-based capital ratio(4)	20.1		%	19.7		%	18.1		%	18.1		%	17.6		%
Tier 1 risk-based capital ratio(5)	18.7		%	18.3		%	16.8		%	16.7		%	16.3		%

Tier 1 leverage ratio(6)	15.6		%	14.5		%	14.0		%	13.3		%	12.7		%
Common equity Tier 1 capital ratio	17.8		%	17.4		%	15.9		%	15.8		%	15.3		%



(1) Tangible common equity ("TCE") is a non-GAAP measure. We believe TCE is a more meaningful measure of the net asset value of the Company to investors. For corresponding reconciliation of TCE to a GAAP financial measure, see Reconciliation of Non-GAAP Measures and Calculations of Regulatory Measures.
(2) Regulatory capital ratios at June 30, 2021 are preliminary and therefore subject to change.
(3) Capital ratios starting March 31, 2020 reflect election to delay for two years an estimate of CECL’s effect on regulatory capital in accordance with the interim final rule issued by U.S. banking agencies in March 2020.
(4) Total risk-based capital ratio is the ratio of total risk-based capital divided by risk-weighted assets.
(5) Tier 1 risk-based capital ratio is the ratio of Tier 1 capital divided by risk-weighted assets.
(6) Tier 1 leverage ratio is the ratio of Tier 1 capital divided by total average assets, after certain adjustments. Tier 1 leverage ratios are based upon the use of daily averages for all periods presented.


SYNCHRONY FINANCIAL
PLATFORM RESULTS
(unaudited, $ in millions)
	Quarter Ended														Six Months Ended
	Jun 30, 2021		Mar 31, 2021		Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		2Q'21 vs. 2Q'20				Jun 30, 2021		Jun 30, 2020		YTD'21 vs. YTD'20
HOME & AUTO
Purchase volume(1)	$	12,209	$	9,915	$	10,327	$	10,653	$	9,729	$	2,480	25.5	%	$	22,124	$	18,833	$	3,291	17.5	%
Period-end loan receivables	$	26,111	$	25,456	$	26,494	$	26,202	$	25,875	$	236	0.9	%	$	26,111	$	25,875	$	236	0.9	%
Average loan receivables, including held for sale	$	25,624	$	25,785	$	26,214	$	25,908	$	25,792	$	(168)	(0.7)	%	$	25,704	$	26,396	$	(692)	(2.6)	%
Average active accounts (in thousands)(3)	17,958		17,808		18,119		18,127		18,213		(255)		(1.4)	%	17,906		18,465		(559)		(3.0)	%

Interest and fees on loans	$	1,014	$	1,059	$	1,147	$	1,114	$	1,079	$	(65)	(6.0)	%	$	2,073	$	2,250	$	(177)	(7.9)	%
Other income	$	15	$	15	$	12	$	14	$	20	$	(5)	(25.0)	%	$	30	$	32	$	(2)	(6.3)	%




DIGITAL
Purchase volume(1)	$	10,930	$	9,340	$	11,005	$	9,038	$	8,439	$	2,491	29.5	%	$	20,270	$	15,833	$	4,437	28.0	%
Period-end loan receivables	$	19,233	$	18,907	$	20,427	$	18,922	$	18,945	$	288	1.5	%	$	19,233	$	18,945	$	288	1.5	%
Average loan receivables, including held for sale	$	18,783	$	19,437	$	19,392	$	18,807	$	19,062	$	(279)	(1.5)	%	$	19,108	$	19,408	$	(300)	(1.5)	%
Average active accounts (in thousands)(3)	17,258		17,318		16,898		16,440		16,414		844		5.1	%	17,298		16,462		836		5.1	%

Interest and fees on loans	$	891	$	903	$	976	$	915	$	913	$	(22)	(2.4)	%	$	1,794	$	1,910	$	(116)	(6.1)	%
Other income	$	(28)	$	(12)	$	(26)	$	(16)	$	(8)	$	(20)	250.0	%	$	(40)	$	(12)	$	(28)	233.3	%




DIVERSIFIED & VALUE
Purchase volume(1)	$	11,618	$	9,220	$	11,267	$	9,634	$	7,683	$	3,935	51.2	%	$	20,838	$	17,084	$	3,754	22.0	%
Period-end loan receivables	$	14,357	$	14,217	$	15,761	$	14,825	$	15,177	$	(820)	(5.4)	%	$	14,357	$	15,177	$	(820)	(5.4)	%
Average loan receivables, including held for sale	$	14,101	$	14,574	$	15,024	$	14,919	$	15,425	$	(1,324)	(8.6)	%	$	14,336	$	16,485	$	(2,149)	(13.0)	%
Average active accounts (in thousands)(3)	17,301		17,457		17,324		16,307		16,626		675		4.1	%	17,446		18,806		(1,360)		(7.2)	%

Interest and fees on loans	$	729	$	789	$	822	$	809	$	849	$	(120)	(14.1)	%	$	1,518	$	1,897	$	(379)	(20.0)	%
Other income	$	(2)	$	5	$	20	$	38	$	17	$	(19)	(111.8)	%	$	3	$	32	$	(29)	(90.6)	%




HEALTH & WELLNESS
Purchase volume(1)	$	2,988	$	2,648	$	2,676	$	2,738	$	1,952	$	1,036	53.1	%	$	5,636	$	4,611	$	1,025	22.2	%
Period-end loan receivables	$	9,515	$	9,317	$	9,580	$	9,368	$	9,222	$	293	3.2	%	$	9,515	$	9,222	$	293	3.2	%
Average loan receivables, including held for sale	$	9,334	$	9,442	$	9,476	$	9,245	$	9,387	$	(53)	(0.6)	%	$	9,387	$	9,823	$	(436)	(4.4)	%
Average active accounts (in thousands)(3)	5,585		5,706		5,724		5,708		5,966		(381)		(6.4)	%	5,642		6,153		(511)		(8.3)	%

Interest and fees on loans	$	523	$	558	$	589	$	552	$	535	$	(12)	(2.2)	%	$	1,081	$	1,132	$	(51)	(4.5)	%
Other income	$	36	$	40	$	27	$	32	$	23	$	13	56.5	%	$	76	$	48	$	28	58.3	%


LIFESTYLE
Purchase volume(1)	$	1,405	$	1,154	$	1,383	$	1,267	$	1,286	$	119	9.3	%	$	2,559	$	2,283	$	276	12.1	%
Period-end loan receivables	$	5,158	$	4,988	$	5,098	$	4,842	$	4,718	$	440	9.3	%	$	5,158	$	4,718	$	440	9.3	%
Average loan receivables, including held for sale	$	5,050	$	5,003	$	4,920	$	4,771	$	4,551	$	499	11.0	%	$	5,027	$	4,607	$	420	9.1	%
Average active accounts (in thousands)(3)	2,442		2,573		2,536		2,404		2,462		(20)		(0.8)	%	2,510		2,634		(124)		(4.7)	%

Interest and fees on loans	$	182	$	181	$	187	$	180	$	172	$	10	5.8	%	$	363	$	367	$	(4)	(1.1)	%
Other income	$	6	$	5	$	6	$	5	$	4	$	2	50.0	%	$	11	$	9	$	2	22.2	%


CORP, OTHER(4)
Purchase volume(1)(2)	$	2,971	$	2,472	$	3,216	$	2,683	$	2,066	$	905	43.8	%	$	5,443	$	4,553	$	890	19.5	%
Period-end loan receivables	$	4,000	$	3,973	$	4,507	$	4,362	$	4,376	$	(376)	(8.6)	%	$	4,000	$	4,376	$	(376)	(8.6)	%
Average loan receivables, including held for sale	$	3,929	$	4,117	$	4,426	$	4,355	$	4,480	$	(551)	(12.3)	%	$	4,023	$	4,844	$	(821)	(16.9)	%
Average active accounts (in thousands)(2)(3)	5,266		5,418		5,660		5,284		5,155		111		2.2	%	5,361		5,881		(520)		(8.8)	%

Interest and fees on loans	$	228	$	242	$	260	$	251	$	260	$	(32)	(12.3)	%	$	470	$	592	$	(122)	(20.6)	%
Other income	$	62	$	78	$	43	$	58	$	39	$	23	59.0	%	$	140	$	83	$	57	68.7	%


TOTAL SYF
Purchase volume(1)(2)	$	42,121	$	34,749	$	39,874	$	36,013	$	31,155	$	10,966	35.2	%	$	76,870	$	63,197	$	13,673	21.6	%
Period-end loan receivables	$	78,374	$	76,858	$	81,867	$	78,521	$	78,313	$	61	0.1	%	$	78,374	$	78,313	$	61	0.1	%
Average loan receivables, including held for sale	$	76,821	$	78,358	$	79,452	$	78,005	$	78,697	$	(1,876)	(2.4)	%	$	77,585	$	81,563	$	(3,978)	(4.9)	%
Average active accounts (in thousands)(2)(3)	65,810		66,280		66,261		64,270		64,836		974		1.5	%	66,163		68,401		(2,238)		(3.3)	%

Interest and fees on loans	$	3,567	$	3,732	$	3,981	$	3,821	$	3,808	$	(241)	(6.3)	%	$	7,299	$	8,148	$	(849)	(10.4)	%
Other income	$	89	$	131	$	82	$	131	$	95	$	(6)	(6.3)	%	$	220	$	192	$	28	14.6	%



(1) Purchase volume, or net credit sales, represents the aggregate amount of charges incurred on credit cards or other credit product accounts less returns during the period.
(2) Includes activity and balances associated with loan receivables held for sale.
(3) Active accounts represent credit card or installment loan accounts on which there has been a purchase, payment or outstanding balance in the current month.
(4) Includes activity and balances associated with our program agreement with GAP Inc. which is scheduled to expire in April 2022.


SYNCHRONY FINANCIAL
RECONCILIATION OF NON-GAAP MEASURES AND CALCULATIONS OF REGULATORY MEASURES(1)
(unaudited, $ in millions, except per share statistics)
	Quarter Ended
	Jun 30, 2021		Mar 31, 2021		Dec 31, 2020		Sep 30, 2020		Jun 30, 2020
COMMON EQUITY AND REGULATORY CAPITAL MEASURES(2)
GAAP Total equity	$	14,197	$	13,439	$	12,701	$	12,099	$	11,899
Less: Preferred stock	(734)		(734)		(734)		(734)		(734)
Less: Goodwill	(1,105)		(1,104)		(1,078)		(1,078)		(1,078)
Less: Intangible assets, net	(1,098)		(1,169)		(1,125)		(1,091)		(1,166)
Tangible common equity	$	11,260	$	10,432	$	9,764	$	9,196	$	8,921
Add: CECL transition amount	2,376		2,595		2,686		2,656		2,570



Adjustments for certain deferred tax liabilities and certain items in accumulated comprehensive income (loss)	301		354		341		305		302
Common equity Tier 1	$	13,937	$	13,381	$	12,791	$	12,157	$	11,793
Preferred stock	734		734		734		734		734
Tier 1 capital	$	14,671	$	14,115	$	13,525	$	12,891	$	12,527

Add: Allowance for credit losses includible in risk-based capital	1,039		1,031		1,079		1,034		1,031
Total Risk-based capital	$	15,710	$	15,146	$	14,604	$	13,925	$	13,558

ASSET MEASURES(2)
Total average assets	$	93,389	$	96,455	$	95,965	$	96,340	$	97,958
Adjustments for:
Add: CECL transition amount	2,376		2,595		2,686		2,656		2,570
Disallowed goodwill and other disallowed intangible assets (net of related deferred tax liabilities) and other	(1,965)		(1,987)		(1,924)		(1,906)		(1,980)

Total assets for leverage purposes	$	93,800	$	97,063	$	96,727	$	97,090	$	98,548


Risk-weighted assets	$	78,281	$	76,965	$	80,561	$	76,990	$	77,048

CECL FULLY PHASED-IN CAPITAL MEASURES
Tier 1 capital	$	14,671	$	14,115	$	13,525	$	12,891	$	12,527
Less: CECL transition adjustment	(2,376)		(2,595)		(2,686)		(2,656)		(2,570)
Tier 1 capital (CECL fully phased-in)	$	12,295	$	11,520	$	10,839	$	10,235	$	9,957
Add: Allowance for credit losses	9,023		9,901		10,265		10,146		9,802
Tier 1 capital (CECL fully phased-in) + Reserves for credit losses	$	21,318	$	21,421	$	21,104	$	20,381	$	19,759

Risk-weighted assets	$	78,281	$	76,965	$	80,561	$	76,990	$	77,048
Less: CECL transition adjustment	(2,166)		(2,386)		(2,477)		(2,447)		(2,361)
Risk-weighted assets (CECL fully phased-in)	$	76,115	$	74,579	$	78,084	$	74,543	$	74,687

TANGIBLE COMMON EQUITY PER SHARE
GAAP book value per share	$	23.48	$	21.86	$	20.49	$	19.47	$	19.13
Less: Goodwill	(1.93)		(1.90)		(1.85)		(1.85)		(1.85)
Less: Intangible assets, net	(1.91)		(2.01)		(1.92)		(1.87)		(2.00)
Tangible common equity per share	$	19.64	$	17.95	$	16.72	$	15.75	$	15.28

(1) Regulatory measures at June 30, 2021 are presented on an estimated basis.
(2) Capital ratios starting March 31, 2020 reflect election to delay for two years an estimate of CECL’s effect on regulatory capital in accordance with the interim final rule issued by U.S. banking agencies in March 2020.

2Q'21 FINANCIAL RESULTS July 20, 2021 Exhibit 99.3

2 Cautionary Statement Regarding Forward-Looking Statements The following slides are part of a presentation by Synchrony Financial in connection with reporting quarterly financial results. No representation is made that the information in these slides is complete. For additional information, see the earnings release and financial supplement included as exhibits to our Current Report on Form 8-K filed today and available on our website (www.synchronyfinancial.com) and the SEC's website (www.sec.gov). All references to net earnings and net income are intended to have the same meaning. All comparisons are for the second quarter of 2021 compared to the second quarter of 2020, unless otherwise noted. This presentation contains certain forward-looking statements as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the "safe harbor" created by those sections. Forward-looking statements may be identified by words such as "expects," "intends," "anticipates," "plans," "believes," "seeks," "targets," "outlook," "estimates," "will," "should," "may" or words of similar meaning, but these words are not the exclusive means of identifying forward-looking statements. Forward- looking statements are based on management's current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, actual results could differ materially from those indicated in these forward-looking statements. Factors that could cause actual results to differ materially include global political, economic, business, competitive, market, regulatory and other factors and risks, such as: the impact of macroeconomic conditions and whether industry trends we have identified develop as anticipated, including the future impacts of the novel coronavirus disease (“COVID-19”) outbreak and measures taken in response thereto for which future developments are highly uncertain and difficult to predict; retaining existing partners and attracting new partners, concentration of our revenue in a small number of partners, and promotion and support of our products by our partners; cyber-attacks or other security breaches; disruptions in the operations of our and our outsourced partners' computer systems and data centers; the financial performance of our partners; the sufficiency of our allowance for credit losses and the accuracy of the assumptions or estimates used in preparing our financial statements, including those related to the CECL accounting guidance; higher borrowing costs and adverse financial market conditions impacting our funding and liquidity, and any reduction in our credit ratings; our ability to grow our deposits in the future; damage to our reputation; our ability to securitize our loan receivables, occurrence of an early amortization of our securitization facilities, loss of the right to service or sub-service our securitized loan receivables, and lower payment rates on our securitized loan receivables; changes in market interest rates and the impact of any margin compression; effectiveness of our risk management processes and procedures, reliance on models which may be inaccurate or misinterpreted, our ability to manage our credit risk; our ability to offset increases in our costs in retailer share arrangements; competition in the consumer finance industry; our concentration in the U.S. consumer credit market; our ability to successfully develop and commercialize new or enhanced products and services; our ability to realize the value of acquisitions and strategic investments; reductions in interchange fees; fraudulent activity; failure of third-parties to provide various services that are important to our operations; international risks and compliance and regulatory risks and costs associated with international operations; alleged infringement of intellectual property rights of others and our ability to protect our intellectual property; litigation and regulatory actions; our ability to attract, retain and motivate key officers and employees; tax legislation initiatives or challenges to our tax positions and/or interpretations, and state sales tax rules and regulations; regulation, supervision, examination and enforcement of our business by governmental authorities, the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) and other legislative and regulatory developments and the impact of the Consumer Financial Protection Bureau’s (the “CFPB”) regulation of our business; impact of capital adequacy rules and liquidity requirements; restrictions that limit our ability to pay dividends and repurchase our common stock, and restrictions that limit the Bank’s ability to pay dividends to us; regulations relating to privacy, information security and data protection; use of third-party vendors and ongoing third-party business relationships; and failure to comply with anti-money laundering and anti-terrorism financing laws. For the reasons described above, we caution you against relying on any forward-looking statements, which should also be read in conjunction with the other cautionary statements that are included elsewhere in this presentation and in our public filings, including under the heading “Risk Factors Relating to Our Business” and “Risk Factors Relating to Regulation” in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2020, as filed on February 11, 2021. You should not consider any list of such factors to be an exhaustive statement of all the risks, uncertainties, or potentially inaccurate assumptions that could cause our current expectations or beliefs to change. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as otherwise may be required by law. Disclaimers

3 $2.12 DILUTED EPS compared to $0.06 13.78% NET INTEREST MARGIN compared to 13.53% 17.8% CET1 liquid assets of $16.3 billion, 17.7% of total assets SUMMARY FINANCIAL METRICS CAPITAL 2Q'21 Financial Highlights $78.4 billion LOAN RECEIVABLES compared to $78.3 billion $59.8 billion DEPOSITS 81% of current funding 3.57% NET CHARGE-OFFS compared to 5.35% 65.8 million AVERAGE ACTIVE ACCOUNTS compared to 64.8 million $521 million CAPITAL RETURNED YTD returned $849 million, $593 million share repurchases 39.6% EFFICIENCY RATIO compared to 36.3%

4 ~65% 2Q'21 Business Highlights PARTNER EXPANSION CONSUMER PERFORMANCE DIGITAL 58% 33% (4)% New Accounts(a) Purchase Volume per Account (b) Average Balance per Account (c) ~45% ONLINE SALES* *Excluding Health & Wellness DIGITAL APPLICATIONS ~35% MOBILE CHANNEL APPLICATIONS DIGITAL PAYMENTS* *2Q'21 % of Total Payments ~55%

5 58% Sales are repeat purchases(a) Resilient Growth Driven by Diversified Exposure In Home Spend Home – Leveraging Our Strengths ▪ Furniture ▪ Accessories ▪ Mattresses • DIY/Do It For Me • Appliances / Electronics • HVAC • Flooring • Other Home Improvement Expand Home Share of Wallet Grow the Core Grow penetration in large vertical partners through enhanced value propositions Demonstrated ability to add merchants/locations (+13k in last 5 years(c)) Digital capabilities driving enhanced merchant experiences Expand Expand into new adjacencies for home (e.g. services, care) Fully roll-out product expansion to merchants Execute on POS technology enhancing merchant integration and product delivery +30 years Average length of relationship with top 20 partners(b) Diversified Spend ~60K Merchants/Locations Strong Partnerships Across Leading Brands In Home Industry

6 B/(W) $ in millions, except per share statistics 2Q'21 2Q'20 $ % Total interest income $3,578 $3,830 $(252) (7)% Total interest expense 266 434 168 39 % Net interest income (NII) 3,312 3,396 (84) (2)% Retailer share arrangements (RSA) (1,006) (773) (233) (30)% Provision for credit losses (194) 1,673 1,867 112 % Other income 89 95 (6) (6)% Other expense 948 986 38 4 % Pre-tax earnings 1,641 59 1,582 NM Provision for income taxes 399 11 (388) Net earnings 1,242 48 1,194 NM Preferred dividends 10 11 (1) Net earnings available to common stockholders $1,232 $37 $1,195 NM Diluted earnings per share $2.12 $0.06 $2.06 Financial Results • $1.2 billion Net earnings, $2.12 diluted EPS • Net interest income down 2% – Interest and fees on loans down 6% as payment rates remain elevated and delinquencies remain low – Interest expense decrease attributed to lower benchmark rates • Retailer share arrangements increased 30% –Increase is driven by the decrease in the provision for credit losses and program performance • Provision for credit losses down 112% – Decrease is driven by $878 million reserve release and lower net charge-offs – Lower reserves driven by improved credit outlook – Net charge-offs of 3.57% compared to 5.35% driven by the impact of lower delinquencies and a strong consumer • Other expense down 4% – Decrease primarily due to lower operational losses partially offset by Employee costs, Marketing and Business Development, and Information processing 2Q'21 HighlightsSummary earnings statement

7 35%Purchase volume $ in billions Loan receivables $ in billions Average active accounts in millions 2% (6)% —% Interest and fees on loans $ in millions $44.0 75.1 Dual Card / Co-Brand $10.4 —%56% Dual Card / Co-Brand $16.3 $18.4 $18.4 Growth Metrics

8 2Q'21 Platform Results(a) Home & Auto Digital Diversified & Value Health & Wellness Lifestyle 1% (5)% 3% 9%2% 2Q'20 2Q'21 V% $9.7 $12.2 25% 18.2 18.0 (1)% $1,079 $1,014 (6)% 2Q'20 2Q'21 V% $8.4 $10.9 30% 16.4 17.3 5% $913 $891 (2)% 2Q'20 2Q'21 V% $7.7 $11.6 51% 16.6 17.3 4% $849 $729 (14)% 2Q'20 2Q'21 V% $2.0 $3.0 53% 6.0 5.6 (6)% $535 $523 (2)% 2Q'20 2Q'21 V% $1.3 $1.4 9% 2.5 2.4 (1)% $172 $182 6% Loan receivables $ in billions Purchase Volume Accounts Interest & Fees on Loans

9 Net Interest Income Net Interest Income $ in millions % of average interest-earning assets • Net interest income decreased 2% – Interest and fees on loans down 6% as payment rates remain elevated and delinquencies remain low • Net interest margin (NIM) up 25 bps – Loan receivables yield: (65) bps – Loan receivables yield of 18.62%, down 84 bps – Liquidity portfolio yield: (4) bps – Mix of Interest-earnings assets: 32 bps – Loan receivable mix as a percent of total Earning Assets increased from 78.0% to 79.7% – Interest-bearing liabilities cost: 62 bps – Total cost decreased 73 bps to 1.42% driven by lower benchmark rates • 2Q’21 payment rate is ~280 bps higher compared to 5- year historical average 2Q'21 Highlights 2Q'20 NIM 13.53% Loan receivables yield (0.65)% Liquidity portfolio yield (0.04)% Mix of Interest-earning assets 0.32% Interest-bearing liabilities cost 0.62% 2Q'21 NIM 13.78% NIM Walk Payment Rate Trends (a) (2)% Avg. (‘16-‘20)

10 Asset Quality Metrics Allowance for credit losses (a) $ in millions, % of period-end loan receivables Net charge-offs $ in millions, % of average loan receivables including held for sale 30+ days past due $ in millions, % of period-end loan receivables 90+ days past due $ in millions, % of period-end loan receivables

11 Other expense down 4% • Decrease primarily due to lower operational losses partially offset by Employee costs, Marketing and Business Development, and Information processing Efficiency ratio 39.6% vs. 36.3% prior year • Increase in ratio primarily driven by decrease in revenue partially offset by lower expenses B/(W) 2Q'20 2Q'21 V$ V% Employee costs $327 $359 $32 10% Professional fees $189 $189 $0 —% Marketing/BD $91 $114 $23 25% Information processing $116 $137 $21 18% Other $263 $149 $(114) (43)% Other expense $986 $948 $(38) (4)% Efficiency (a) 36.3% 39.6% 3.3 pts. Other Expense Other expense $ in millions 2Q'21 Highlights (4)%

12 Tier 1 Capital + Credit Loss Reserve Ratio* Capital ratios (b) Funding, Capital and Liquidity Funding sources $ in billions V$ $(1.5) $(1.1) $(4.3) V% Liquidity (a) $ in billions CET1 Capital Ratio Tier 1 Capital Ratio Total Capital Ratio * The “Tier 1 Capital + Credit Loss Reserve Ratio” is the sum of our “Tier 1 Capital” and “Allowance for Credit Losses,” divided by our “Total Risk-Weighted Assets”. Tier 1. Capital and Risk- Weighted Assets are adjusted to reflect the fully phased-in impact of CECL. These adjusted metrics are non-GAAP measures, see non-GAAP reconciliation in appendix. Unsecured Securitization Deposits Deposits 80% 81% +1 pt. Securitization 10% 10% - Unsecured 10% 9% (1) pt. Liquid assets $22.4 $16.3 Undrawn credit facilities 5.6 4.9 Total liquidity $28.0 $21.2 % of Total assets 29.0% 23.0%

13 2Q'21 Key Business Themes Strong growth trajectory Payment rates remain elevated Home Opportunity Continued strength in credit • Purchase volume of $42 billion, +35% • Originated 6 million new accounts, +58% and 11 million new accounts YTD • Growth in loan receivables across four platforms • Loan receivables slightly up to $78 billion • NIM of 13.78% up 25 bps • Delinquencies down (102) bps for 30+ (77) bps for 90+ • NCO down (178) bps • Grow penetration in large verticals • Continue to add merchants and grow share of wallet • Execute on POS Technology to enhance product delivery

14 Footnotes 2Q'21 Business Highlights | slide 4: a. New Accounts represent accounts that were approved in the respective period, in millions. b. Purchase Volume per Account is calculated as the Purchase volume divided by Average active accounts, in $. c. Average Balance per Account is calculated as the Average loan receivables divided by Average active accounts, in $. Home – Leveraging Our Strengths| slide 5: a. Repeat sales excludes Dual Card/Co-Brand, installment, and commercial portfolios. b. Based on weighted average of Interest and fees on loans as of year end 2020. c. Based on merchant/location growth as of year end 2020. Platform Results | slide 8: a. Accounts represent average active accounts in millions, which are credit card or installment loan accounts on which there has been a purchase, payment or outstanding balance in the current month. Purchase volume $ in billions and Interest and fees on loans $ in millions. Net Interest Income | slide 9: a. Payment rate is calculated as customer payments divided by beginning of period loan receivables. Payment rate data excludes amounts related to the Walmart portfolio, which was sold in October 2019. Asset Quality Metrics| slide 10: a. Allowance for credit losses reflects adoption of CECL on January 1, 2020, which included a $3.0 billion increase in reserves upon adoption. Other Expense | slide 11: a. “Other expense” divided by sum of “NII” plus “Other income” less “Retailer share arrangements (RSA)”. Funding, Capital and Liquidity | slide 12: a. Does not include unencumbered assets in the Bank that could be pledged. b. Capital ratios reflect election to delay an estimate of CECL’s effect on regulatory capital for two years in accordance with the interim final rule issued by U.S. banking agencies in March 2020. CET1, Tier 1, and Total Capital Ratio are on a Transition basis.

16 Non-GAAP Reconciliation* The following table sets forth the components of our Tier 1 Capital + Reserves ratio for the periods indicated below. * Estimated at June 30, 2021, $ in millions At June 30, Total 2020 2021 Tier 1 Capital. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $12,527 $14,671 Less: CECL transition adjustment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,570) (2,376) Tier 1 capital (CECL fully phased-in). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $9,957 $12,295 Add: Allowance for credit losses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,802 9,023 Tier 1 capital (CECL fully phased-in) plus Reserves for credit losses. . . . . . $19,759 $21,318 Risk-weighted assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $77,048 $78,281 Less: CECL transition adjustment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,361) (2,166) Risk-weighted assets (CECL fully phased-in). . . . . . . . . . . . . . . . . . . . . . . . . . . $74,687 $76,115

Exhibit 99.4

Explanation of Non-GAAP Measures

The information provided in this Form 8-K and exhibits includes measures which are not prepared in accordance with U.S. generally accepted accounting principles ("GAAP").

We present certain capital measures in this Form 8-K and exhibits. Our “fully-phased Tier 1 Capital and Credit Loss Reserve Ratio” is not required by regulators to be disclosed, and therefore is considered a non-GAAP measure. We believe this ratio is a useful measure to investors as it provides a meaningful measure of what the Company’s total loss absorption capacity would be if the transitional rules currently in effect, which permit the temporary deferral of the regulatory capital effects of CECL, were no longer available for us to apply.

We also present a measure we refer to as “tangible common equity” in this Form 8-K and exhibits. Tangible common equity itself is not a measure presented in accordance with GAAP. We believe tangible common equity is a more meaningful measure to investors of the net asset value of the Company.

The reconciliations of the above non-GAAP measures to the applicable comparable GAAP financial measure are included in the detailed financial tables included in Exhibit 99.2.

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