Form 8-K Synchrony Financial For: Oct 19

October 19, 2021 6:05 AM

Exhibit 99.1


For Immediate Release Synchrony Financial (NYSE: SYF) October 19, 2021

THIRD QUARTER 2021 RESULTS AND KEY METRICS

4.9%

Return on

Assets

17.1%

CET1

Ratio

$1.4B

Capital

Returned

CEO COMMENTARY

“Our strategic focus on growing existing programs and reaching new markets combined with our expansion into new products and distribution channels, is powering strong performance,” said Brian Doubles, Synchrony’s President and Chief Executive Officer.

“The combination of our data-driven insights, seamlessly customized experiences and industry-leading product suite empowers both our partners and customers with choice and delivers compelling outcomes for all our stakeholders.

“As we continue to invest in digital innovation, the expansion of our distribution networks and the evolution of our offerings to address the ever-changing consumer landscape, Synchrony will continue to reach and serve more partners and customers, solidifying our position as the partner of choice for a diverse universe of partners.”

$79.8B

Loans

includes Loan Receivables of $76.4B and loans HFS of $3.5B

Net Earnings of $1.1 Billion or $2.00 Per Diluted Share, including a $0.33 benefit from the reserve release related to the reclassification of the Gap portfolio to held for sale

Double-Digit Growth in New Accounts and Purchase Volume

Continued Strength in Credit Performance Contributed to a 98% Decrease in Provision for Credit Losses

STAMFORD, Conn. – Synchrony Financial (NYSE: SYF) today announced third quarter 2021 net earnings of $1.1 billion, or $2.00 per diluted share, compared to $313 million, or $0.52 per diluted share in the third quarter 2020. Third quarter 2021 net earnings included a $187 million post-tax benefit, or $0.33 per diluted share, from the reserve release related to the reclassification of the Gap portfolio to held for sale.

KEY OPERATING & FINANCIAL METRICS*

STRONG NET EARNINGS DRIVEN BY HEALTHY CONSUMER, AS REFLECTED IN PURCHASE VOLUME GROWTH AND CREDIT TRENDS

•Purchase volume increased 16% to $41.9 billion

•Loans of $79.8 billion, including $76.4 billion of loan receivables and $3.5 billion of loan receivables held for sale, increased 2%

•Average active accounts increased 5% to 67.2 million

•New accounts increased 17% to 6.2 million

•Net interest margin increased 165 basis points to 15.45%

•Efficiency ratio decreased 100 basis points to 38.7%

•Net earnings of $1.1 billion, or $2.00 per diluted share, including a $0.33 per diluted share benefit from the reserve release related to the reclassification of the Gap portfolio to held for sale, compared to $313 million, or $0.52 per diluted share

•Return on assets increased 4 percentage points to 4.9%

•Return on equity increased 22 percentage points to 32.1%

CFO COMMENTARY

BUSINESS AND FINANCIAL RESULTS FOR

THE THIRD QUARTER OF 2021*

“We delivered strong results for the third quarter, marked by broad-based growth in new accounts and purchase volume, an improved net interest margin, historically low losses and continued cost discipline,” said Brian Wenzel, Synchrony’s Executive Vice President and Chief Financial Officer.

“While customer payment rates remained elevated and continued to serve as a headwind to loan receivables growth and yield, we experienced some modest improvement in that trend as the quarter progressed with four of our five sales platforms growing loan receivables during the quarter.

“We remain confident in the core strengths of our business model as we execute on our strategy to drive sustainable growth, attractive returns and considerable capital for all our stakeholders.”

BUSINESS HIGHLIGHTS

CONTINUED TO WIN AND RENEW KEY PARTNERSHIPS AND EXPAND PRODUCT SUITE AND NETWORK

•Renewed 9 programs, including The Container Store and Rite Aid

•Launched Walgreens Credit Card and announced PayPal savings program

•Broadened distribution network through a new strategic partnership with Clover

•Expanding SetPay installment product with Pay-in-4 option

FINANCIAL HIGHLIGHTS

EARNINGS GROWTH DRIVEN BY BROAD BASED STRENGTH ACROSS THE BUSINESS

•Interest and fees on loans increased 2% to $3.9 billion, mainly due to growth in average loan receivables.

•Net interest income increased $201 million, or 6%, to $3.7 billion.

•Retailer share arrangements increased $367 million, or 41%, to $1.3 billion, mainly driven by the decrease in the provision for credit losses and continued strong program performance, including loan receivables growth and the improvement in net interest income.

•Provision for credit losses decreased $1.2 billion, or 98%, to $25 million, driven by reserve release, including $247 million attributable to the Gap portfolio, and lower net charge-offs

•Other income decreased $37 million, or 28%, to $94 million, largely driven by higher program loyalty costs from higher purchase volume.

•Other expense decreased $106 million, or 10%, to $961 million, primarily reflecting the impact of the prior year restructuring charge of $89 million and lower operational losses.

•Net earnings increased to $1.1 billion, including the $187 million post-tax benefit from the reserve release related to the reclassification of the Gap portfolio to held for sale, compared to $313 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 2.42% compared to 2.67% last year, reflecting a decline of 25 basis points. Excluding the impact of the Gap portfolio from both periods, the year over year decline was approximately 40 basis points.

•Net charge-offs as a percentage of total average loan receivables were 2.18% compared to 4.42% last year.

•The allowance for credit losses as a percentage of total period-end loan receivables was 11.28%.

SALES PLATFORM HIGHLIGHTS

DIVERSITY ACROSS OUR PLATFORMS CONTINUES TO PROVIDE RESILIENCE

•Home & Auto purchase volume increased 10%, reflecting continued strength across most industry segments. Period-end loan receivables increased 2% and interest and fees on loans were flat compared to the prior year, primarily reflecting the impact of elevated payment rates. Average active accounts were essentially unchanged.

•Digital purchase volume increased 21% and period-end loan receivables increased 4%, reflecting strength in digital-based partners due to the shift in consumer behavior. Interest and fees on loans increased 6%, driven primarily by higher yield, while average active accounts increased 7%.

•Diversified & Value purchase volume increased 25%. Period-end loan receivables decreased 3% reflecting elevated payment rates. Interest and fees on loans decreased 4%, driven primarily by lower loan receivables, and average active accounts increased 10%.

•Health & Wellness purchase volume increased 10% and period-end loan receivables increased 5%, reflecting higher consumer confidence to undertake planned procedures. Interest and fees on loans increased 6%, driven primarily by loan receivables growth, and average active accounts were essentially unchanged.

•Lifestyle purchase volume increased 2% reflecting broad-based growth across the platform, but somewhat suppressed comparing to last year’s strong power sports growth. Period-end loan receivables increased 8%, reflecting continued strength in power sports. Interest and fees on loans increased 4%, driven primarily by loan receivables growth, and average active accounts increased 3%.

BALANCE SHEET, LIQUIDITY & CAPITAL

FUNDING, CAPITAL & LIQUIDITY REMAIN ROBUST

•Loans of $79.8 billion, including $76.4 billion of loan receivables and $3.5 billion of loan receivables held for sale, increased 2%; purchase volume increased 16% and average active accounts increased 5%.

•Deposits decreased $3.2 billion, or 5%, to $60.3 billion and comprised 82% of funding.

•Total liquidity (liquid assets and undrawn credit facilities) of $18.4 billion, or 20.0% of total assets.

•Total capital returned of $1.4 billion, reflecting $1.3 billion of share repurchases and $124 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 17.1% compared to 15.8%, and the estimated Tier 1 Capital ratio was 18.0% compared to 16.7%, reflecting our strong capital generation capabilities.

*All comparisons are for the third quarter of 2021 compared to the third 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 September 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, October 19, 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														Nine Months Ended
	Sep 30, 2021		Jun 30, 2021		Mar 31, 2021		Dec 31, 2020		Sep 30, 2020		3Q'21 vs. 3Q'20				Sep 30, 2021		Sep 30, 2020		YTD'21 vs. YTD'20
EARNINGS
Net interest income	$	3,658	$	3,312	$	3,439	$	3,659	$	3,457	$	201	5.8	%	$	10,409	$	10,743	$	(334)	(3.1)	%
Retailer share arrangements	(1,266)		(1,006)		(989)		(1,047)		(899)		(367)		40.8	%	(3,261)		(2,598)		(663)		25.5	%

Provision for credit losses	25		(194)		334		750		1,210		(1,185)		(97.9)	%	165		4,560		(4,395)		(96.4)	%
Net interest income, after retailer share arrangements and provision for credit losses	2,367		2,500		2,116		1,862		1,348		1,019		75.6	%	6,983		3,585		3,398		94.8	%
Other income	94		89		131		82		131		(37)		(28.2)	%	314		323		(9)		(2.8)	%
Other expense	961		948		932		1,000		1,067		(106)		(9.9)	%	2,841		3,055		(214)		(7.0)	%
Earnings before provision for income taxes	1,500		1,641		1,315		944		412		1,088		264.1	%	4,456		853		3,603		NM
Provision for income taxes	359		399		290		206		99		260		262.6	%	1,048		206		842		NM
Net earnings	$	1,141	$	1,242	$	1,025	$	738	$	313	$	828	264.5	%	$	3,408	$	647	$	2,761	NM
Net earnings available to common stockholders	$	1,130	$	1,232	$	1,014	$	728	$	303	$	827	272.9	%	$	3,376	$	615	$	2,761	NM



COMMON SHARE STATISTICS
Basic EPS	$	2.02	$	2.13	$	1.74	$	1.25	$	0.52	$	1.50	288.5	%	$	5.89	$	1.04	$	4.85	NM
Diluted EPS	$	2.00	$	2.12	$	1.73	$	1.24	$	0.52	$	1.48	284.6	%	$	5.84	$	1.04	$	4.80	NM

Dividend declared per share	$	0.22	$	0.22	$	0.22	$	0.22	$	0.22	$	—	—	%	$	0.66	$	0.66	$	—	—	%
Common stock price	$	48.88	$	48.52	$	40.66	$	34.71	$	26.17	$	22.71	86.8	%	$	48.88	$	26.17	$	22.71	86.8	%
Book value per share	$	24.13	$	23.48	$	21.86	$	20.49	$	19.47	$	4.66	23.9	%	$	24.13	$	19.47	$	4.66	23.9	%
Tangible common equity per share(1)	$	20.12	$	19.64	$	17.95	$	16.72	$	15.75	$	4.37	27.7	%	$	20.12	$	15.75	$	4.37	27.7	%

Beginning common shares outstanding	573.4		581.1		584.0		583.8		583.7		(10.3)		(1.8)	%	584.0		615.9		(31.9)		(5.2)	%
Issuance of common shares	—		—		—		—		—		—		—	%	—		—		—		—	%
Stock-based compensation	0.5		1.0		2.2		0.2		0.1		0.4		NM		3.7		1.5		2.2		146.7	%
Shares repurchased	(26.7)		(8.7)		(5.1)		—		—		(26.7)		NM		(40.5)		(33.6)		(6.9)		20.5	%
Ending common shares outstanding	547.2		573.4		581.1		584.0		583.8		(36.6)		(6.3)	%	547.2		583.8		(36.6)		(6.3)	%

Weighted average common shares outstanding	560.6		577.2		583.3		583.9		583.8		(23.2)		(4.0)	%	573.6		590.8		(17.2)		(2.9)	%
Weighted average common shares outstanding (fully diluted)	565.6		581.7		587.5		586.6		584.8		(19.2)		(3.3)	%	578.2		592.2		(14.0)		(2.4)	%

(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																			Nine Months Ended
	Sep 30, 2021			Jun 30, 2021			Mar 31, 2021			Dec 31, 2020			Sep 30, 2020			3Q'21 vs. 3Q'20				Sep 30, 2021			Sep 30, 2020			YTD'21 vs. YTD'20
PERFORMANCE METRICS
Return on assets(1)	4.9		%	5.3		%	4.3		%	3.1		%	1.3		%			3.6	%	4.9		%	0.9		%			4.0	%
Return on equity(2)	32.1		%	36.5		%	31.8		%	23.6		%	10.3		%			21.8	%	33.5		%	7.0		%			26.5	%
Return on tangible common equity(3)	40.1		%	46.3		%	40.8		%	30.4		%	13.1		%			27.0	%	42.4		%	8.8		%			33.6	%



Net interest margin(4)	15.45		%	13.78		%	13.98		%	14.64		%	13.80		%			1.65	%	14.40		%	14.17		%			0.23	%
Efficiency ratio(5)	38.7		%	39.6		%	36.1		%	37.1		%	39.7		%			(1.0)	%	38.1		%	36.1		%			2.0	%
Other expense as a % of average loan receivables, including held for sale	4.84		%	4.95		%	4.82		%	5.01		%	5.44		%			(0.60)	%	4.87		%	5.08		%			(0.21)	%
Effective income tax rate	23.9		%	24.3		%	22.1		%	21.8		%	24.0		%			(0.1)	%	23.5		%	24.2		%			(0.7)	%


CREDIT QUALITY METRICS
Net charge-offs as a % of average loan receivables, including held for sale	2.18		%	3.57		%	3.62		%	3.16		%	4.42		%			(2.24)	%	3.11		%	5.05		%			(1.94)	%
30+ days past due as a % of period-end loan receivables(6)	2.42		%	2.11		%	2.83		%	3.07		%	2.67		%			(0.25)	%	2.42		%	2.67		%			(0.25)	%
90+ days past due as a % of period-end loan receivables(6)	1.05		%	1.00		%	1.52		%	1.40		%	1.24		%			(0.19)	%	1.05		%	1.24		%			(0.19)	%
Net charge-offs	$	432		$	684		$	699		$	631		$	866		$	(434)	(50.1)	%	$	1,815		$	3,037		$	(1,222)	(40.2)	%
Loan receivables delinquent over 30 days(6)	$	1,850		$	1,653		$	2,175		$	2,514		$	2,100		$	(250)	(11.9)	%	$	1,850		$	2,100		$	(250)	(11.9)	%
Loan receivables delinquent over 90 days(6)	$	804		$	784		$	1,170		$	1,143		$	973		$	(169)	(17.4)	%	$	804		$	973		$	(169)	(17.4)	%

Allowance for credit losses (period-end)	$	8,616		$	9,023		$	9,901		$	10,265		$	10,146		$	(1,530)	(15.1)	%	$	8,616		$	10,146		$	(1,530)	(15.1)	%
Allowance coverage ratio(7)	11.28		%	11.51		%	12.88		%	12.54		%	12.92		%			(1.64)	%	11.28		%	12.92		%			(1.64)	%

BUSINESS METRICS
Purchase volume(8)(9)	$	41,912		$	42,121		$	34,749		$	39,874		$	36,013		$	5,899	16.4	%	$	118,782		$	99,210		$	19,572	19.7	%
Period-end loan receivables	$	76,388		$	78,374		$	76,858		$	81,867		$	78,521		$	(2,133)	(2.7)	%	$	76,388		$	78,521		$	(2,133)	(2.7)	%
Credit cards	$	72,289		$	74,429		$	73,244		$	78,455		$	75,204		$	(2,915)	(3.9)	%	$	72,289		$	75,204		$	(2,915)	(3.9)	%
Consumer installment loans	$	2,614		$	2,507		$	2,319		$	2,125		$	1,987		$	627	31.6	%	$	2,614		$	1,987		$	627	31.6	%
Commercial credit products	$	1,401		$	1,379		$	1,248		$	1,250		$	1,270		$	131	10.3	%	$	1,401		$	1,270		$	131	10.3	%
Other	$	84		$	59		$	47		$	37		$	60		$	24	40.0	%	$	84		$	60		$	24	40.0	%
Average loan receivables, including held for sale	$	78,714		$	76,821		$	78,358		$	79,452		$	78,005		$	709	0.9	%	$	77,965		$	80,368		$	(2,403)	(3.0)	%
Period-end active accounts (in thousands)(9)(10)	67,245			66,892			65,219			68,540			64,800			2,445		3.8	%	67,245			64,800			2,445		3.8	%
Average active accounts (in thousands)(9)(10)	67,189			65,810			66,280			66,261			64,270			2,919		4.5	%	66,500			67,246			(746)		(1.1)	%

LIQUIDITY
Liquid assets
Cash and equivalents	$	9,806		$	11,117		$	16,620		$	11,524		$	13,552		$	(3,746)	(27.6)	%	$	9,806		$	13,552		$	(3,746)	(27.6)	%
Total liquid assets	$	14,664		$	16,297		$	22,636		$	18,321		$	21,402		$	(6,738)	(31.5)	%	$	14,664		$	21,402		$	(6,738)	(31.5)	%
Undrawn credit facilities
Undrawn credit facilities	$	3,700		$	4,900		$	5,400		$	5,400		$	5,400		$	(1,700)	(31.5)	%	$	3,700		$	5,400		$	(1,700)	(31.5)	%
Total liquid assets and undrawn credit facilities	$	18,364		$	21,197		$	28,036		$	23,721		$	26,802		$	(8,438)	(31.5)	%	$	18,364		$	26,802		$	(8,438)	(31.5)	%
Liquid assets % of total assets	15.95		%	17.71		%	23.62		%	19.09		%	22.37		%			(6.42)	%	15.95		%	22.37		%			(6.42)	%
Liquid assets including undrawn credit facilities % of total assets	19.97		%	23.04		%	29.25		%	24.72		%	28.02		%			(8.05)	%	19.97		%	28.02		%			(8.05)	%



(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														Nine Months Ended
	Sep 30, 2021		Jun 30, 2021		Mar 31, 2021		Dec 31, 2020		Sep 30, 2020		3Q'21 vs. 3Q'20				Sep 30, 2021		Sep 30, 2020		YTD'21 vs. YTD'20
Interest income:
Interest and fees on loans	$	3,887	$	3,567	$	3,732	$	3,981	$	3,821	$	66	1.7	%	$	11,186	$	11,969	$	(783)	(6.5)	%
Interest on cash and debt securities	11		11		10		12		16		(5)		(31.3)	%	32		105		(73)		(69.5)	%
Total interest income	3,898		3,578		3,742		3,993		3,837		61		1.6	%	11,218		12,074		(856)		(7.1)	%

Interest expense:
Interest on deposits	131		146		170		200		245		(114)		(46.5)	%	447		894		(447)		(50.0)	%
Interest on borrowings of consolidated securitization entities	41		44		51		52		53		(12)		(22.6)	%	136		185		(49)		(26.5)	%
Interest on senior unsecured notes	68		76		82		82		82		(14)		(17.1)	%	226		252		(26)		(10.3)	%

Total interest expense	240		266		303		334		380		(140)		(36.8)	%	809		1,331		(522)		(39.2)	%

Net interest income	3,658		3,312		3,439		3,659		3,457		201		5.8	%	10,409		10,743		(334)		(3.1)	%

Retailer share arrangements	(1,266)		(1,006)		(989)		(1,047)		(899)		(367)		40.8	%	(3,261)		(2,598)		(663)		25.5	%


Provision for credit losses	25		(194)		334		750		1,210		(1,185)		(97.9)	%	165		4,560		(4,395)		(96.4)	%
Net interest income, after retailer share arrangements and provision for credit losses	2,367		2,500		2,116		1,862		1,348		1,019		75.6	%	6,983		3,585		3,398		94.8	%

Other income:
Interchange revenue	232		223		171		185		172		60		34.9	%	626		467		159		34.0	%
Debt cancellation fees	70		66		69		72		68		2		2.9	%	205		206		(1)		(0.5)	%
Loyalty programs	(256)		(247)		(179)		(202)		(155)		(101)		65.2	%	(682)		(447)		(235)		52.6	%
Other	48		47		70		27		46		2		4.3	%	165		97		68		70.1	%
Total other income	94		89		131		82		131		(37)		(28.2)	%	314		323		(9)		(2.8)	%

Other expense:
Employee costs	369		359		364		347		382		(13)		(3.4)	%	1,092		1,033		59		5.7	%
Professional fees	196		189		190		186		187		9		4.8	%	575		573		2		0.3	%
Marketing and business development	110		114		95		139		107		3		2.8	%	319		309		10		3.2	%
Information processing	139		137		131		128		125		14		11.2	%	407		364		43		11.8	%
Other	147		149		152		200		266		(119)		(44.7)	%	448		776		(328)		(42.3)	%
Total other expense	961		948		932		1,000		1,067		(106)		(9.9)	%	2,841		3,055		(214)		(7.0)	%

Earnings before provision for income taxes	1,500		1,641		1,315		944		412		1,088		264.1	%	4,456		853		3,603		NM
Provision for income taxes	359		399		290		206		99		260		262.6	%	1,048		206		842		NM
Net earnings	$	1,141	$	1,242	$	1,025	$	738	$	313	$	828	264.5	%	$	3,408	$	647	$	2,761	NM

Net earnings available to common stockholders	$	1,130	$	1,232	$	1,014	$	728	$	303	$	827	272.9	%	$	3,376	$	615	$	2,761	NM


SYNCHRONY FINANCIAL
STATEMENTS OF FINANCIAL POSITION
(unaudited, $ in millions)
	Quarter Ended
	Sep 30, 2021		Jun 30, 2021		Mar 31, 2021		Dec 31, 2020		Sep 30, 2020		Sep 30, 2021 vs. Sep 30, 2020
Assets
Cash and equivalents	$	9,806	$	11,117	$	16,620	$	11,524	$	13,552	$	(3,746)	(27.6)	%
Debt securities	5,444		5,728		6,550		7,469		8,432		(2,988)		(35.4)	%
Loan receivables:
Unsecuritized loans held for investment	56,745		55,994		53,823		56,472		52,613		4,132		7.9	%
Restricted loans of consolidated securitization entities	19,643		22,380		23,035		25,395		25,908		(6,265)		(24.2)	%
Total loan receivables	76,388		78,374		76,858		81,867		78,521		(2,133)		(2.7)	%
Less: Allowance for credit losses	(8,616)		(9,023)		(9,901)		(10,265)		(10,146)		1,530		(15.1)	%
Loan receivables, net	67,772		69,351		66,957		71,602		68,375		(603)		(0.9)	%
Loan receivables held for sale	3,450		—		23		5		4		3,446		NM
Goodwill	1,105		1,105		1,104		1,078		1,078		27		2.5	%
Intangible assets, net	1,090		1,098		1,169		1,125		1,091		(1)		(0.1)	%
Other assets	3,270		3,618		3,431		3,145		3,126		144		4.6	%
Total assets	$	91,937	$	92,017	$	95,854	$	95,948	$	95,658	$	(3,721)	(3.9)	%

Liabilities and Equity
Deposits:
Interest-bearing deposit accounts	$	59,998	$	59,500	$	62,419	$	62,469	$	63,195	$	(3,197)	(5.1)	%
Non-interest-bearing deposit accounts	355		341		342		313		298		57		19.1	%
Total deposits	60,353		59,841		62,761		62,782		63,493		(3,140)		(4.9)	%
Borrowings:
Borrowings of consolidated securitization entities	6,288		6,987		7,193		7,810		7,809		(1,521)		(19.5)	%

Senior unsecured notes	6,472		6,470		7,967		7,965		7,962		(1,490)		(18.7)	%

Total borrowings	12,760		13,457		15,160		15,775		15,771		(3,011)		(19.1)	%
Accrued expenses and other liabilities	4,888		4,522		4,494		4,690		4,295		593		13.8	%
Total liabilities	78,001		77,820		82,415		83,247		83,559		(5,558)		(6.7)	%
Equity:
Preferred stock	734		734		734		734		734		—		—	%
Common stock	1		1		1		1		1		—		—	%
Additional paid-in capital	9,649		9,620		9,592		9,570		9,552		97		1.0	%
Retained earnings	13,562		12,560		11,470		10,621		10,024		3,538		35.3	%
Accumulated other comprehensive income (loss)	(64)		(56)		(56)		(51)		(31)		(33)		106.5	%
Treasury stock	(9,946)		(8,662)		(8,302)		(8,174)		(8,181)		(1,765)		21.6	%
Total equity	13,936		14,197		13,439		12,701		12,099		1,837		15.2	%
Total liabilities and equity	$	91,937	$	92,017	$	95,854	$	95,948	$	95,658	$	(3,721)	(3.9)	%


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

	Quarter Ended
	Sep 30, 2021						Jun 30, 2021						Mar 31, 2021						Dec 31, 2020						Sep 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	$	9,559	$	3	0.12	%	$	13,584	$	4	0.12	%	$	14,610	$	4	0.11	%	$	11,244	$	4	0.14	%	$	13,664	$	4	0.12	%
Securities available for sale	5,638		8		0.56	%	5,988		7		0.47	%	6,772		6		0.36	%	8,706		8		0.37	%	7,984		12		0.60	%

Loan receivables, including held for sale:
Credit cards	74,686		3,793		20.15	%	72,989		3,484		19.15	%	74,865		3,657		19.81	%	76,039		3,908		20.45	%	74,798		3,752		19.96	%
Consumer installment loans	2,555		64		9.94	%	2,417		59		9.79	%	2,219		53		9.69	%	2,057		50		9.67	%	1,892		46		9.67	%
Commercial credit products	1,407		29		8.18	%	1,363		23		6.77	%	1,231		21		6.92	%	1,293		23		7.08	%	1,238		22		7.07	%
Other	66		1		NM		52		1		NM		43		1		NM		63		—		—		77		1		NM
Total loan receivables, including held for sale	78,714		3,887		19.59	%	76,821		3,567		18.62	%	78,358		3,732		19.32	%	79,452		3,981		19.93	%	78,005		3,821		19.49	%
Total interest-earning assets	93,911		3,898		16.47	%	96,393		3,578		14.89	%	99,740		3,742		15.22	%	99,402		3,993		15.98	%	99,653		3,837		15.32	%

Non-interest-earning assets:
Cash and due from banks	1,588						1,559						1,635						1,525						1,489
Allowance for credit losses	(8,956)						(9,801)						(10,225)						(10,190)						(9,823)
Other assets	5,405						5,238						5,305						5,228						5,021
Total non-interest-earning assets	(1,963)						(3,004)						(3,285)						(3,437)						(3,313)

Total assets	$	91,948					$	93,389					$	96,455					$	95,965					$	96,340

Liabilities
Interest-bearing liabilities:
Interest-bearing deposit accounts	$	59,275	$	131	0.88	%	$	60,761	$	146	0.96	%	$	62,724	$	170	1.10	%	$	62,800	$	200	1.27	%	$	63,569	$	245	1.53	%
Borrowings of consolidated securitization entities	7,051		41		2.31	%	7,149		44		2.47	%	7,694		51		2.69	%	7,809		52		2.65	%	8,057		53		2.62	%

Senior unsecured notes	6,471		68		4.17	%	7,276		76		4.19	%	7,965		82		4.18	%	7,963		82		4.10	%	7,960		82		4.10	%

Total interest-bearing liabilities	72,797		240		1.31	%	75,186		266		1.42	%	78,383		303		1.57	%	78,572		334		1.69	%	79,586		380		1.90	%

Non-interest-bearing liabilities
Non-interest-bearing deposit accounts	358						349						346						308						307
Other liabilities	4,676						4,199						4,655						4,663						4,308
Total non-interest-bearing liabilities	5,034						4,548						5,001						4,971						4,615

Total liabilities	77,831						79,734						83,384						83,543						84,201

Equity
Total equity	14,117						13,655						13,071						12,422						12,139

Total liabilities and equity	$	91,948					$	93,389					$	96,455					$	95,965					$	96,340
Net interest income			$	3,658					$	3,312					$	3,439					$	3,659					$	3,457

Interest rate spread(1)					15.16	%					13.47	%					13.65	%					14.29	%					13.42	%
Net interest margin(2)					15.45	%					13.78	%					13.98	%					14.64	%					13.80	%



(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)

	Nine Months Ended Sep 30, 2021						Nine Months Ended Sep 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	$	12,567	$	11	0.12	%	$	13,992	$	49	0.47	%
Securities available for sale	6,128		21		0.46	%	6,918		56		1.08	%

Loan receivables, including held for sale:
Credit cards	74,179		10,934		19.71	%	77,476		11,764		20.28	%
Consumer installment loans	2,398		176		9.81	%	1,624		118		9.71	%
Commercial credit products	1,334		73		7.32	%	1,210		85		9.38	%
Other	54		3		7.43	%	58		2		4.61	%
Total loan receivables, including held for sale	77,965		11,186		19.18	%	80,368		11,969		19.89	%
Total interest-earning assets	96,660		11,218		15.52	%	101,278		12,074		15.92	%

Non-interest-earning assets:
Cash and due from banks	1,594						1,475
Allowance for loan losses	(9,656)						(9,253)
Other assets	5,317						4,833
Total non-interest-earning assets	(2,745)						(2,945)

Total assets	$	93,915					$	98,333

Liabilities
Interest-bearing liabilities:
Interest-bearing deposit accounts	$	60,907	$	447	0.98	%	$	64,075	$	894	1.86	%
Borrowings of consolidated securitization entities	7,296		136		2.49	%	8,966		185		2.76	%

Senior unsecured notes	7,232		226		4.18	%	8,241		252		4.08	%

Total interest-bearing liabilities	75,435		809		1.43	%	81,282		1,331		2.19	%

Non-interest-bearing liabilities
Non-interest-bearing deposit accounts	351						305
Other liabilities	4,510						4,443
Total non-interest-bearing liabilities	4,861						4,748

Total liabilities	80,296						86,030

Equity
Total equity	13,619						12,303

Total liabilities and equity	$	93,915					$	98,333
Net interest income			$	10,409					$	10,743

Interest rate spread(1)					14.09	%					13.73	%
Net interest margin(2)					14.40	%					14.17	%

(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
	Sep 30, 2021			Jun 30, 2021			Mar 31, 2021			Dec 31, 2020			Sep 30, 2020			Sep 30, 2021 vs. Sep 30, 2020
BALANCE SHEET STATISTICS
Total common equity	$	13,202		$	13,463		$	12,705		$	11,967		$	11,365		$	1,837	16.2	%
Total common equity as a % of total assets	14.36		%	14.63		%	13.25		%	12.47		%	11.88		%			2.48	%

Tangible assets	$	89,742		$	89,814		$	93,581		$	93,745		$	93,489		$	(3,747)	(4.0)	%
Tangible common equity(1)	$	11,007		$	11,260		$	10,432		$	9,764		$	9,196		$	1,811	19.7	%
Tangible common equity as a % of tangible assets(1)	12.27		%	12.54		%	11.15		%	10.42		%	9.84		%			2.43	%
Tangible common equity per share(1)	$	20.12		$	19.64		$	17.95		$	16.72		$	15.75		$	4.37	27.7	%

REGULATORY CAPITAL RATIOS(2)(3)
	Basel III - CECL Transition
Total risk-based capital ratio(4)	19.3		%	20.1		%	19.7		%	18.1		%	18.1		%
Tier 1 risk-based capital ratio(5)	18.0		%	18.7		%	18.3		%	16.8		%	16.7		%

Tier 1 leverage ratio(6)	15.5		%	15.6		%	14.5		%	14.0		%	13.3		%
Common equity Tier 1 capital ratio	17.1		%	17.8		%	17.4		%	15.9		%	15.8		%



(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 September 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														Nine Months Ended
	Sep 30, 2021		Jun 30, 2021		Mar 31, 2021		Dec 31, 2020		Sep 30, 2020		3Q'21 vs. 3Q'20				Sep 30, 2021		Sep 30, 2020		YTD'21 vs. YTD'20
HOME & AUTO
Purchase volume(1)	$	11,765	$	12,209	$	9,915	$	10,327	$	10,653	$	1,112	10.4	%	$	33,889	$	29,486	$	4,403	14.9	%
Period-end loan receivables	$	26,723	$	26,111	$	25,456	$	26,494	$	26,202	$	521	2.0	%	$	26,723	$	26,202	$	521	2.0	%
Average loan receivables, including held for sale	$	26,317	$	25,624	$	25,785	$	26,214	$	25,908	$	409	1.6	%	$	25,911	$	26,232	$	(321)	(1.2)	%
Average active accounts (in thousands)(3)	18,169		17,958		17,808		18,119		18,127		42		0.2	%	17,981		18,354		(373)		(2.0)	%

Interest and fees on loans	$	1,114	$	1,014	$	1,059	$	1,147	$	1,114	$	—	—	%	$	3,187	$	3,364	$	(177)	(5.3)	%
Other income	$	16	$	15	$	15	$	12	$	14	$	2	14.3	%	$	46	$	46	$	—	—	%




DIGITAL
Purchase volume(1)	$	10,980	$	10,930	$	9,340	$	11,005	$	9,038	$	1,942	21.5	%	$	31,250	$	24,871	$	6,379	25.6	%
Period-end loan receivables	$	19,636	$	19,233	$	18,907	$	20,427	$	18,922	$	714	3.8	%	$	19,636	$	18,922	$	714	3.8	%
Average loan receivables, including held for sale	$	19,286	$	18,783	$	19,437	$	19,392	$	18,807	$	479	2.5	%	$	19,168	$	19,206	$	(38)	(0.2)	%
Average active accounts (in thousands)(3)	17,655		17,258		17,318		16,898		16,440		1,215		7.4	%	17,426		16,461		965		5.9	%

Interest and fees on loans	$	973	$	891	$	903	$	976	$	915	$	58	6.3	%	$	2,767	$	2,825	$	(58)	(2.1)	%
Other income	$	(19)	$	(28)	$	(12)	$	(26)	$	(16)	$	(3)	18.8	%	$	(59)	$	(28)	$	(31)	110.7	%




DIVERSIFIED & VALUE
Purchase volume(1)	$	12,006	$	11,618	$	9,220	$	11,267	$	9,634	$	2,372	24.6	%	$	32,844	$	26,718	$	6,126	22.9	%
Period-end loan receivables	$	14,415	$	14,357	$	14,217	$	15,761	$	14,825	$	(410)	(2.8)	%	$	14,415	$	14,825	$	(410)	(2.8)	%
Average loan receivables, including held for sale	$	14,328	$	14,101	$	14,574	$	15,024	$	14,919	$	(591)	(4.0)	%	$	14,333	$	15,959	$	(1,626)	(10.2)	%
Average active accounts (in thousands)(3)	17,903		17,301		17,457		17,324		16,307		1,596		9.8	%	17,591		18,118		(527)		(2.9)	%

Interest and fees on loans	$	780	$	729	$	789	$	822	$	809	$	(29)	(3.6)	%	$	2,298	$	2,706	$	(408)	(15.1)	%
Other income	$	(8)	$	(2)	$	5	$	20	$	38	$	(46)	(121.1)	%	$	(5)	$	70	$	(75)	(107.1)	%




HEALTH & WELLNESS
Purchase volume(1)	$	3,024	$	2,988	$	2,648	$	2,676	$	2,738	$	286	10.4	%	$	8,660	$	7,349	$	1,311	17.8	%
Period-end loan receivables	$	9,879	$	9,515	$	9,317	$	9,580	$	9,368	$	511	5.5	%	$	9,879	$	9,368	$	511	5.5	%
Average loan receivables, including held for sale	$	9,654	$	9,334	$	9,442	$	9,476	$	9,245	$	409	4.4	%	$	9,477	$	9,629	$	(152)	(1.6)	%
Average active accounts (in thousands)(3)	5,707		5,585		5,706		5,724		5,708		(1)		—	%	5,673		6,018		(345)		(5.7)	%

Interest and fees on loans	$	587	$	523	$	558	$	589	$	552	$	35	6.3	%	$	1,668	$	1,684	$	(16)	(1.0)	%
Other income	$	41	$	36	$	40	$	27	$	32	$	9	28.1	%	$	117	$	80	$	37	46.3	%


LIFESTYLE
Purchase volume(1)	$	1,298	$	1,405	$	1,154	$	1,383	$	1,267	$	31	2.4	%	$	3,857	$	3,550	$	307	8.6	%
Period-end loan receivables	$	5,234	$	5,158	$	4,988	$	5,098	$	4,842	$	392	8.1	%	$	5,234	$	4,842	$	392	8.1	%
Average loan receivables, including held for sale	$	5,185	$	5,050	$	5,003	$	4,920	$	4,771	$	414	8.7	%	$	5,080	$	4,662	$	418	9.0	%
Average active accounts (in thousands)(3)	2,465		2,442		2,573		2,536		2,404		61		2.5	%	2,500		2,569		(69)		(2.7)	%

Interest and fees on loans	$	187	$	182	$	181	$	187	$	180	$	7	3.9	%	$	550	$	547	$	3	0.5	%
Other income	$	6	$	6	$	5	$	6	$	5	$	1	20.0	%	$	17	$	14	$	3	21.4	%


CORP, OTHER(4)
Purchase volume(1)(2)	$	2,839	$	2,971	$	2,472	$	3,216	$	2,683	$	156	5.8	%	$	8,282	$	7,236	$	1,046	14.5	%
Period-end loan receivables(5)	$	501	$	4,000	$	3,973	$	4,507	$	4,362	$	(3,861)	(88.5)	%	$	501	$	4,362	$	(3,861)	(88.5)	%
Average loan receivables, including held for sale	$	3,944	$	3,929	$	4,117	$	4,426	$	4,355	$	(411)	(9.4)	%	$	3,996	$	4,680	$	(684)	(14.6)	%
Average active accounts (in thousands)(2)(3)	5,290		5,266		5,418		5,660		5,284		6		0.1	%	5,329		5,726		(397)		(6.9)	%

Interest and fees on loans	$	246	$	228	$	242	$	260	$	251	$	(5)	(2.0)	%	$	716	$	843	$	(127)	(15.1)	%
Other income	$	58	$	62	$	78	$	43	$	58	$	—	—	%	$	198	$	141	$	57	40.4	%


TOTAL SYF
Purchase volume(1)(2)	$	41,912	$	42,121	$	34,749	$	39,874	$	36,013	$	5,899	16.4	%	$	118,782	$	99,210	$	19,572	19.7	%
Period-end loan receivables(5)	$	76,388	$	78,374	$	76,858	$	81,867	$	78,521	$	(2,133)	(2.7)	%	$	76,388	$	78,521	$	(2,133)	(2.7)	%
Average loan receivables, including held for sale	$	78,714	$	76,821	$	78,358	$	79,452	$	78,005	$	709	0.9	%	$	77,965	$	80,368	$	(2,403)	(3.0)	%
Average active accounts (in thousands)(2)(3)	67,189		65,810		66,280		66,261		64,270		2,919		4.5	%	66,500		67,246		(746)		(1.1)	%

Interest and fees on loans	$	3,887	$	3,567	$	3,732	$	3,981	$	3,821	$	66	1.7	%	$	11,186	$	11,969	$	(783)	(6.5)	%
Other income	$	94	$	89	$	131	$	82	$	131	$	(37)	(28.2)	%	$	314	$	323	$	(9)	(2.8)	%



(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. except where noted, which is scheduled to expire in Q2 2022.
(5) Reflects the reclassification of $3.5 billion of loan receivables held for sale in Q3 2021.


SYNCHRONY FINANCIAL
RECONCILIATION OF NON-GAAP MEASURES AND CALCULATIONS OF REGULATORY MEASURES(1)
(unaudited, $ in millions, except per share statistics)
	Quarter Ended
	Sep 30, 2021		Jun 30, 2021		Mar 31, 2021		Dec 31, 2020		Sep 30, 2020
COMMON EQUITY AND REGULATORY CAPITAL MEASURES(2)
GAAP Total equity	$	13,936	$	14,197	$	13,439	$	12,701	$	12,099
Less: Preferred stock	(734)		(734)		(734)		(734)		(734)
Less: Goodwill	(1,105)		(1,105)		(1,104)		(1,078)		(1,078)
Less: Intangible assets, net	(1,090)		(1,098)		(1,169)		(1,125)		(1,091)
Tangible common equity	$	11,007	$	11,260	$	10,432	$	9,764	$	9,196
Add: CECL transition amount	2,274		2,376		2,595		2,686		2,656



Adjustments for certain deferred tax liabilities and certain items in accumulated comprehensive income (loss)	299		301		354		341		305
Common equity Tier 1	$	13,580	$	13,937	$	13,381	$	12,791	$	12,157
Preferred stock	734		734		734		734		734
Tier 1 capital	$	14,314	$	14,671	$	14,115	$	13,525	$	12,891

Add: Allowance for credit losses includible in risk-based capital	1,052		1,039		1,031		1,079		1,034
Total Risk-based capital	$	15,366	$	15,710	$	15,146	$	14,604	$	13,925

ASSET MEASURES(2)
Total average assets	$	91,948	$	93,389	$	96,455	$	95,965	$	96,340
Adjustments for:
Add: CECL transition amount	2,274		2,376		2,595		2,686		2,656
Disallowed goodwill and other disallowed intangible assets (net of related deferred tax liabilities) and other	(1,960)		(1,965)		(1,987)		(1,924)		(1,906)

Total assets for leverage purposes	$	92,262	$	93,800	$	97,063	$	96,727	$	97,090


Risk-weighted assets	$	79,597	$	78,281	$	76,965	$	80,561	$	76,990

CECL FULLY PHASED-IN CAPITAL MEASURES
Tier 1 capital	$	14,314	$	14,671	$	14,115	$	13,525	$	12,891
Less: CECL transition adjustment	(2,274)		(2,376)		(2,595)		(2,686)		(2,656)
Tier 1 capital (CECL fully phased-in)	$	12,040	$	12,295	$	11,520	$	10,839	$	10,235
Add: Allowance for credit losses	8,616		9,023		9,901		10,265		10,146
Tier 1 capital (CECL fully phased-in) + Reserves for credit losses	$	20,656	$	21,318	$	21,421	$	21,104	$	20,381

Risk-weighted assets	$	79,597	$	78,281	$	76,965	$	80,561	$	76,990
Less: CECL transition adjustment	(2,065)		(2,166)		(2,386)		(2,477)		(2,447)
Risk-weighted assets (CECL fully phased-in)	$	77,532	$	76,115	$	74,579	$	78,084	$	74,543

TANGIBLE COMMON EQUITY PER SHARE
GAAP book value per share	$	24.13	$	23.48	$	21.86	$	20.49	$	19.47
Less: Goodwill	(2.02)		(1.93)		(1.90)		(1.85)		(1.85)
Less: Intangible assets, net	(1.99)		(1.91)		(2.01)		(1.92)		(1.87)
Tangible common equity per share	$	20.12	$	19.64	$	17.95	$	16.72	$	15.75

(1) Regulatory measures at September 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.

3Q'21 FINANCIAL RESULTS October 19, 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 third quarter of 2021 compared to the third 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 $2.00 DILUTED EPS compared to $0.52; $0.33 benefit from Gap portfolio move to HFS 15.45% NET INTEREST MARGIN compared to 13.80% 17.1% CET1 liquid assets of $14.7 billion, 16.0% of total assets SUMMARY FINANCIAL METRICS CAPITAL 3Q'21 Financial Highlights $79.8 billion LOANS Includes $76.4 billion Loan Receivables and $3.5 billion HFS compared to $78.5 billion $60.3 billion DEPOSITS 82% of current funding 2.18% NET CHARGE-OFFS compared to 4.42% 67.2 million AVERAGE ACTIVE ACCOUNTS compared to 64.3 million $1.4 billion CAPITAL RETURNED YTD returned $2.3 billion, $1.9 billion share repurchases 38.7% EFFICIENCY RATIO compared to 39.7%

4 ~65% 3Q'21 Business Highlights BUSINESS EXPANSION CONSUMER PERFORMANCE DIGITAL 17% 11% (3)% New Accounts Purchase Volume per Account Average Balance per Account (a) (b) (c) ~40% ONLINE SALES* *Excluding Health & Wellness DIGITAL APPLICATIONS ~35% MOBILE CHANNEL APPLICATIONS DIGITAL PAYMENTS* *3Q'21 % of Total Payments ~55%

5 Synchrony Mastercard - Diversified Growth at Attractive Returns (a)

6 B/(W) $ in millions, except per share statistics 3Q'21 3Q'20 $ % Total interest income $3,898 $3,837 $61 2 % Total interest expense 240 380 140 37 % Net interest income (NII) 3,658 3,457 201 6 % Retailer share arrangements (RSA) (1,266) (899) (367) (41)% Provision for credit losses 25 1,210 1,185 98 % Other income 94 131 (37) (28)% Other expense 961 1,067 106 10 % Pre-tax earnings 1,500 412 1,088 264 % Provision for income taxes 359 99 (260) (263)% Net earnings 1,141 313 828 265 % Preferred dividends 11 10 1 NM Net earnings available to common stockholders $1,130 $303 $827 273 % Diluted earnings per share $2.00 $0.52 $1.48 285 % Financial Results • $1.1 billion Net earnings, $2.00 diluted EPS – Reserve release related to Gap portfolio to HFS was $247 million, or $187 million after-tax; EPS benefit of $0.33 • Net interest income up 6% – Interest and fees on loans up 2% driven by increase in average loan receivables – Interest expense decrease attributed to lower benchmark rates • Retailer share arrangements increased 41% –Increase is driven by lower provision for credit losses and continued strong program performance, including growth and the improvement in Net Interest Income • Provision for credit losses down 98% – Driven by reserve release, including amounts attributable to Gap portfolio, and lower net charge offs • Other expense down 10% – Decrease primarily due to prior year restructuring charge of $89 million 3Q'21 Highlights Summary earnings statement

7 $44.0 Dual Card / Co-Brand Dual Card / Co-Brand(b) Growth Metrics 59.4 62.1 $74.5 $76.3 $3,586 $3,641 $33.5 $39.0 2% 16% 5% 2% (3)%Purchase volume $ in billions Loan receivables $ in billions Average active accounts in millions Interest and fees on loans $ in millions $13.1 29%$16.9 4%$18.3 $19.1 $74.5 $76.1 (a) Loan receivables shown above on a Core basis is a non-GAAP measure and excludes from both prior year and current year amounts related to the Gap portfolio. See non-GAAP reconciliation in the appendix.

8 3Q'21 Platform Results Home & Auto Digital Diversified & Value Health & Wellness Lifestyle 3Q'20 3Q'21 V% $10.7 $11.8 10% 18.1 18.2 —% $1,114 $1,114 —% 3Q'20 3Q'21 V% $9.0 $11.0 21% 16.4 17.7 7% $915 $973 6% 3Q'20 3Q'21 V% $9.6 $12.0 25% 16.3 17.9 10% $809 $780 (4)% 3Q'20 3Q'21 V% $2.7 $3.0 10% 5.7 5.7 —% $552 $587 6% 3Q'20 3Q'21 V% $1.3 $1.3 2% 2.4 2.5 3% $180 $187 4% Loan receivables $ in billions (a) Interest & Fees on Loans 2% (3)% 5% 8%4% Accounts Purchase Volume

9 Net Interest Income Net Interest Income $ in millions % of average interest-earning assets • Net interest income increased 6% – Interest and fees on loans up 2% as average loan receivables increased • Net interest margin (NIM) up 165 bps – Mix of Interest-earnings assets: 106 bps – Loan receivable mix as a percent of total Earning Assets increased from 78.3% to 83.8% – Interest-bearing liabilities cost: 51 bps – Total cost decreased 59 bps to 1.31% driven by lower benchmark rates – Loan receivables yield: 8 bps – Loan receivables yield of 19.59%, up 10 bps • 3Q’21 payment rate is ~260 bps higher compared to 5-year historical average 3Q'21 Highlights 3Q'20 NIM 13.80% Mix of Interest-earning assets 1.06% Interest-bearing liabilities cost 0.51% Loan receivables yield 0.08% Liquidity portfolio yield —% 3Q'21 NIM 15.45% NIM Walk Payment Rate Trends (a) 6% Avg. (‘16-‘20)

10 Asset Quality Metrics Allowance for credit losses $ 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 (c) (a) (b)

11 • Other expense down 10% – Decrease primarily driven by prior year restructuring charge of $89 million and lower operational losses • Efficiency ratio 38.7% vs. 39.7% prior year B/(W) 3Q'20 3Q'21 V$ V% Employee costs $382 $369 $13 3% Professional fees $187 $196 $(9) (5)% Marketing/BD $107 $110 $(3) (3)% Information processing $125 $139 $(14) (11)% Other $266 $147 $119 45% Other expense $1,067 $961 $106 10% Efficiency(a) 39.7% 38.7% (1.0) pts. Other Expense Other expense $ in millions 3Q'21 Highlights (10)%

12 Liquid assets $21.4 $14.7 Undrawn credit facilities 5.4 3.7 Total liquidity $26.8 $18.4 % of Total assets 28.0% 20.0% Tier 1 Capital + Credit Loss Reserve Ratio* Capital ratios Funding, Capital and Liquidity Funding sources $ in billions V$ $(1.5) $(1.5) $(3.2) V% Liquidity $ 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% 82% +2 pts. Securitization 10% 9% (1) pt. Unsecured 10% 9% (1) pt. (a) (b)

13 Purchase Volume Continued strength into holiday season Loan Receivables Modest sequential acceleration, reflecting strength in purchase volume partially offset by continued elevation in payment rates Net Interest Margin Consistent with 3Q, reflecting continued anticipated rise in DQ Provision for Credit Losses DQ’s & NCO’s: modest increase from current levels in Q4 Reserve: net impact of asset growth, credit performance, and macroeconomic factors; continued reserve reduction related to the Gap portfolio RSA’s as % of ALR Some moderation, reflecting anticipated rise in NCO Operating Expense Slight sequential increase in dollars reflecting purchase volume and account growth Expectations for 4Q’21 Key Drivers (comments and trends in comparison to 3Q21, except where noted)

14 3Q'21 Key Business Themes Enhancing customer reach & utility Generating strong growth Driving greater profitabilityCredit continues to improve • Launched Walgreens credit card and announced PayPal savings program • Broadened distribution network through partnership with Clover • Expanding SetPay installment product with Pay-in-4 option • Purchase volume of $42 billion, +16% • Originated 6 million new accounts, +17% and 18 million new accounts YTD • Including HFS, Loans grew 2% • Delinquencies down (25) bps for 30+; (19) bps for 90+ • NCO decreased (224) bps • NIM of 15.45%, up 165 bps • Risk-adjusted yield(a) of 17.4%, up 234 bps • ROA of 4.9%, up 360 bps

15 Footnotes References in this presentation to “HFS” are to Loan receivables Held for Sale. 3Q'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 $. Synchrony Mastercard - Diversified Growth at Attractive Returns | slide 5: a. Based on Synchrony analysis using various external industry reports. Growth Metrics | slide 7: b. Dual Card/Co-Brand balances include Loan receivables held for sale. 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. Excluding the Gap program, 3Q’21 30+ rate was down ~40bps. versus 3Q’20 b. Excluding the Gap program, 3Q’21 90+ rate was down ~25bps. versus 3Q’20 c. 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. Key Business Themes | slide 14: a. Risk-adjusted yield is calculated as Interest and fees on loans less Net charge offs divided by average loan receivables.

17 Non-GAAP Reconciliation The following table sets forth the components of our Loan receivables for the periods indicated below. $ in millions At September 30, Total CORE LOAN RECEIVABLES 2020 2021 Loan receivables $78,521 $76,388 Loan receivables held for sale 4 3,450 Loan receivables including held for sale $78,525 $79,838 Less: Gap Loan receivables (4,016) (3,786) Less: 2020 Loan receivables held for sale (4) — Core Loan receivables $74,505 $76,052

18 Non-GAAP Reconciliation Continued* The following table sets forth the components of our Tier 1 Capital + Reserves ratio for the periods indicated below. $ in millions At September 30, Total 2020 2021 Tier 1 Capital. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $12,891 $14,314 Less: CECL transition adjustment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,656) (2,274) Tier 1 capital (CECL fully phased-in). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,235 $12,040 Add: Allowance for credit losses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,146 8,616 Tier 1 capital (CECL fully phased-in) plus Reserves for credit losses. . . . . . $20,381 $20,656 Risk-weighted assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $76,990 $79,597 Less: CECL transition adjustment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,447) (2,065) Risk-weighted assets (CECL fully phased-in). . . . . . . . . . . . . . . . . . . . . . . . . . . $74,543 $77,532 * Estimated at September 30, 2021

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 information on our loan receivables that have been adjusted to exclude amounts related to the Gap Inc. portfolio, which we refer to as "Core" financial measures, in this Form 8-K and exhibits. These Core financial measures are not measures presented in accordance with GAAP. Given the planned sale of the Gap Inc. portfolio which is expected to be completed in the second quarter of 2022, we believe the presentation of certain Core financial measures is a more meaningful measure to investors of the Company's ongoing credit programs. The reconciliation of these Core financial measures to the comparable GAAP component is included in Exhibit 99.3.

In addition, we also 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 these capital and equity related non-GAAP measures to the applicable comparable GAAP financial measures are included in the detailed financial tables included in Exhibit 99.2.

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Form 8-K Synchrony Financial For: Oct 19

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