Synchrony Financial (NYSE: SYF) Q2 2025 Earnings | 07/22/2025

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Synchrony Financial reported its second quarter 2025 results on July 22, 2025, delivering strong earnings performance amid a challenging economic backdrop. Net earnings for the quarter reached $967 million, an increase of 50% year-over-year, translating to $2.50 per diluted share. The company’s return on average assets stood at 3.2% and return on tangible common equity was an impressive 28.3%. This robust profitability was achieved through disciplined credit actions, resilient consumer balances, and ongoing portfolio performance improvements. Net revenue for the quarter was reported at $3.6 billion, representing a 2% decline year-over-year. However, net interest income climbed 3% to $4.5 billion, benefiting from both a reduction in interest expense and higher interest and fees on loans. The net interest margin increased by 32 basis points to 14.78%, supported by product pricing and policy changes that improved the loan receivable yield, while cost of liabilities decreased by 45 basis points over the prior year. Synchrony generated $46 billion in purchase volume for Q2, down 2% year-over-year, impacted by tighter credit standards and selective consumer spending. Dual and co-branded cards accounted for 45% of purchase volume and increased 5% versus last year, driven by growth in the CareCredit dual card and expansion across other dual card programs. Average transaction values showed improvement, declining by only 50 basis points compared to last year—a moderation relative to previous quarters' declines. Non-prime credit segments contributed particular strength in frequency and spend, even as overall discretionary spend showed mixed trends during the quarter. Ending loan receivables stood at $100 billion, down 2% year-over-year, due in part to lower purchase volume and an elevated payment rate of 16.3%. The company’s efficiency ratio was 34.1%, higher than last year owing to increased employee costs and preparation for new program launches. Provision for credit losses fell to $1.1 billion, reflecting a reserve release and declining net charge-offs, as a result of proactive credit management. Total liquid assets increased 9% to $21.8 billion, and the CET1 capital ratio rose to 13.6%—100 basis points above the prior year. Strategically, Synchrony renewed and established partnerships with leading retailers during the quarter, including a new co-branded credit card program with Walmart to be launched through One Pay, and expanded its relationship with Amazon. These partnerships are expected to drive further momentum as consumer demand recovers. The outlook for full-year 2025 was updated to reflect expectations for flat loan receivables, a payment rate trending above 2024 levels, and a loss rate between 5.6% and 5.8%. Net revenue is projected between $15.0 billion and $15.3 billion, and net interest margin is expected to further expand in the second half, supported by higher loan yields, lower funding costs, and ongoing portfolio optimization. Management highlighted a continued focus on risk-adjusted returns, the impact of new major partner programs, and prudent cost discipline as pathways to further strengthening profitability. About Inside Ticker: For up-to-date earnings analysis, market insights, and in-depth updates on Synchrony Financial (NYSE: SYF) and other leading consumer finance companies, follow Inside Ticker and visit InsideTicker.com for expert coverage and real-time financial news. #Synchrony #SYF #Q22025 #Earnings #FinancialResults #NetIncome #EPS #CreditCards #InterestIncome #NetInterestMargin #CapitalRatio #ReturnOnEquity #PortfolioPerformance #AssetQuality #ShareholderReturns #StrategicPartnerships #Walmart #Amazon #CoBrandedCards #InsideTicker