Q3 2024 Synchrony Financial Earnings Call Transcript
Key Points
- Synchrony Financial (SYF) reported strong financial results with a 10% increase in net revenue to $3.8 billion, driven by higher interest fees and other income.
- The company launched strategic partnerships, including one with Albertsons, allowing CareCredit cardholders to pay for health and wellness items at over 2,200 stores.
- Synchrony Financial (SYF) introduced a new payment experience for pet owners, enhancing customer experience and expanding its market reach.
- The company maintained a strong capital position with a CET1 ratio of 13.1%, reflecting a 30 basis point increase from the previous year.
- Synchrony Financial (SYF) returned $399 million to shareholders through share repurchases and dividends, demonstrating a commitment to shareholder value.
- Loan receivables growth was modest at 4%, impacted by a 4% decline in purchase volume.
- The company experienced higher net charge-offs and a $47 million reserve build, indicating increased credit losses.
- Delinquency rates increased, with the 30-plus delinquency rate at 4.78% and the 90-plus rate at 2.33%, both above historical averages.
- Synchrony Financial (SYF) faced challenges with late fee rule changes, incurring $11 million in preparatory expenses.
- The company noted a slowdown in consumer spending, particularly in discretionary categories, impacting purchase volumes.
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Synchrony is also excited to launch a strategic partnership between CareCredit and Albertsons companies, a leading food and drug retailer in our communities. This collaboration allows customers to use their care credit card to pay for select health and wellness items in nearly 2,200 Albertsons company stores, which includes Albertsons, Safeway, bonds, Acme, Shaws and Jasco. This adds to our expanding list of partners such as Sam's Club, Walgreens and Walmart, where care credit is accepted for payment of select health and wellness products and services.
And lastly, synchrony is proud to launch a first of its kind payment experience for pet parents with our patent pending insurance reimbursement functionality that
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