Q2 2024 Synchrony Financial Earnings Call Transcript
Key Points
- Synchrony Financial (SYF) reported strong second-quarter results with net earnings of $643 million or $1.55 per diluted share.
- The company added 5.1 million new accounts and grew average active accounts by 2%, indicating strong customer demand.
- Ending receivables grew by 8% compared to last year, driven by a diversified portfolio and disciplined credit management.
- Synchrony Financial (SYF) renewed more than 15 partners, including Verizon and added Virgin Red, expanding its partner network.
- The company maintained a strong capital position with a CET1 ratio of 12.6% and returned $400 million to shareholders through share repurchases and dividends.
- Purchase volume growth ranged from up 2% to down 3% year-over-year, reflecting lower consumer spend on bigger ticket items.
- Average transaction values declined by about 2% versus last year, indicating a decrease in consumer spending per transaction.
- Provision for credit losses increased to $1.7 billion, reflecting higher net charge-offs and a $70 million reserve build.
- The company's 30-plus delinquency rate was 4.47%, up from 3.84% in the prior year, indicating a rise in delinquency rates.
- Synchrony Financial (SYF) expects flat to low single-digit decline in purchase volume for the second half of 2024, reflecting cautious consumer spending.
Good morning, and welcome to the Synchrony Financial second-quarter 2024 earnings conference call. Please refer to the company's Investor Relations website for access to their earnings materials. Please be advised that today's conference call is being recorded. (Operator Instructions) I will now turn the call over to Kathryn Miller, Senior Vice President of Investor Relations. Thank you. You may begin.
Thank you, and good morning, everyone. Welcome to our quarterly earnings conference call. In addition to today's press release, we have provided a presentation that covers the topics we plan to address during our call. The press release detailed financial schedules and presentation are available on our website, synchronyfinancial.com. This information can be accessed by going to the Investor Relations section of the website.
Before we get started, I wanted to remind you that our comments today will include forward-looking statements. These statements are subject to risks and uncertainty, and actual
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