Synchrony Financial (SYF) 8-K Synchrony Financial Reports First Quarter Net Earnings of $1.1 Billion or $1.56 Per Diluted Share

Exhibit 99.2

SYNCHRONY FINANCIAL
FINANCIAL SUMMARY
(unaudited, in millions, except per share statistics)
	Quarter Ended
	Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			1Q'19 vs. 1Q'18
EARNINGS
Net interest income	$	4,226		$	4,333		$	4,206		$	3,737		$	3,842		$	384		10.0	%
Retailer share arrangements	(954		)	(855		)	(871		)	(653		)	(720		)	(234		)	32.5	%
Net interest income, after retailer share arrangements	3,272			3,478			3,335			3,084			3,122			150			4.8	%
Provision for loan losses	859			1,452			1,451			1,280			1,362			(503		)	(36.9	)%
Net interest income, after retailer share arrangements and provision for loan losses	2,413			2,026			1,884			1,804			1,760			653			37.1	%
Other income	92			64			63			63			75			17			22.7	%
Other expense	1,043			1,078			1,054			975			988			55			5.6	%
Earnings before provision for income taxes	1,462			1,012			893			892			847			615			72.6	%
Provision for income taxes	355			229			222			196			207			148			71.5	%
Net earnings	$	1,107		$	783		$	671		$	696		$	640		$	467		73.0	%
Net earnings attributable to common stockholders	$	1,107		$	783		$	671		$	696		$	640		$	467		73.0	%
COMMON SHARE STATISTICS
Basic EPS	$	1.57		$	1.09		$	0.91		$	0.93		$	0.84		$	0.73		86.9	%
Diluted EPS	$	1.56		$	1.09		$	0.91		$	0.92		$	0.83		$	0.73		88.0	%
Dividend declared per share	$	0.21		$	0.21		$	0.21		$	0.15		$	0.15		$	0.06		40.0	%
Common stock price	$	31.90		$	23.46		$	31.08		$	33.38		$	33.53		$	(1.63	)	(4.9	)%
Book value per share	$	21.35		$	20.42		$	19.47		$	19.37		$	18.88		$	2.47		13.1	%
Tangible common equity per share(1)	$	17.96		$	17.41		$	16.51		$	16.84		$	16.55		$	1.41		8.5	%
Beginning common shares outstanding	718.8			718.7			746.6			760.3			770.5			(51.7		)	(6.7	)%
Issuance of common shares	—			—			—			—			—			—			—	%
Stock-based compensation	0.9			0.1			2.4			0.3			0.2			0.7			NM
Shares repurchased	(30.9		)	—			(30.3		)	(14.0		)	(10.4		)	(20.5		)	197.1	%
Ending common shares outstanding	688.8			718.8			718.7			746.6			760.3			(71.5		)	(9.4	)%
Weighted average common shares outstanding	706.3			718.7			734.9			752.2			763.7			(57.4		)	(7.5	)%
Weighted average common shares outstanding (fully diluted)	708.9			720.9			738.8			758.3			770.3			(61.4		)	(8.0	)%
(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.

1

SYNCHRONY FINANCIAL
SELECTED METRICS
(unaudited, $ in millions, except account data)
	Quarter Ended
	Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			1Q'19 vs. 1Q'18
PERFORMANCE METRICS
Return on assets(1)	4.3		%	2.9		%	2.7		%	2.9		%	2.7		%				1.6	%
Return on equity(2)	30.4		%	21.5		%	18.5		%	19.4		%	18.2		%				12.2	%
Return on tangible common equity(3)	35.8		%	25.2		%	21.5		%	22.1		%	20.7		%				15.1	%
Net interest margin(4)	16.08		%	16.06		%	16.41		%	15.33		%	16.05		%				0.03	%
Efficiency ratio(5)	31.0		%	30.4		%	31.0		%	31.0		%	30.9		%				0.1	%
Other expense as a % of average loan receivables, including held for sale	4.71		%	4.79		%	4.82		%	5.02		%	5.07		%				(0.36	)%
Effective income tax rate	24.3		%	22.6		%	24.9		%	22.0		%	24.4		%				(0.1	)%
CREDIT QUALITY METRICS
Net charge-offs as a % of average loan receivables, including held for sale	6.06		%	5.54		%	4.97		%	5.97		%	6.14		%				(0.08	)%
30+ days past due as a % of period-end loan receivables(6)	4.92		%	4.76		%	4.59		%	4.17		%	4.52		%				0.40	%
90+ days past due as a % of period-end loan receivables(6)	2.51		%	2.29		%	2.09		%	1.98		%	2.28		%				0.23	%
Net charge-offs	$	1,344		$	1,248		$	1,087		$	1,159		$	1,198		$	146		12.2	%
Loan receivables delinquent over 30 days(6)	$	3,957		$	4,430		$	4,021		$	3,293		$	3,521		$	436		12.4	%
Loan receivables delinquent over 90 days(6)	$	2,019		$	2,135		$	1,833		$	1,561		$	1,776		$	243		13.7	%
Allowance for loan losses (period-end)	$	5,942		$	6,427		$	6,223		$	5,859		$	5,738		$	204		3.6	%
Allowance coverage ratio(7)	7.39		%	6.90		%	7.11		%	7.43		%	7.37		%				0.02	%
BUSINESS METRICS
Purchase volume(8)(9)	$	32,513		$	40,320		$	36,443		$	34,268		$	29,626		$	2,887		9.7	%
Period-end loan receivables	$	80,405		$	93,139		$	87,521		$	78,879		$	77,853		$	2,552		3.3	%
Credit cards	$	77,251		$	89,994		$	84,319		$	75,753		$	74,952		$	2,299		3.1	%
Consumer installment loans	$	1,860		$	1,845		$	1,789		$	1,708		$	1,590		$	270		17.0	%
Commercial credit products	$	1,256		$	1,260		$	1,353		$	1,356		$	1,275		$	(19	)	(1.5	)%
Other	$	38		$	40		$	60		$	62		$	36		$	2		5.6	%
Average loan receivables, including held for sale	$	89,903		$	89,340		$	86,783		$	77,853		$	79,090		$	10,813		13.7	%
Period-end active accounts (in thousands)(9)(10)	74,812			80,339			75,457			69,767			68,891			5,921			8.6	%
Average active accounts (in thousands)(9)(10)	77,132			77,382			75,482			69,344			71,323			5,809			8.1	%
LIQUIDITY
Liquid assets
Cash and equivalents	$	12,963		$	9,396		$	12,068		$	15,675		$	13,044		$	(81	)	(0.6	)%
Total liquid assets	$	17,360		$	14,822		$	18,214		$	21,491		$	18,557		$	(1,197	)	(6.5	)%
Undrawn credit facilities
Undrawn credit facilities	$	6,050		$	4,375		$	5,125		$	6,500		$	6,000		$	50		0.8	%
Total liquid assets and undrawn credit facilities	$	23,410		$	19,197		$	23,339		$	27,991		$	24,557		$	(1,147	)	(4.7	)%
Liquid assets % of total assets	16.47		%	13.88		%	17.42		%	21.68		%	19.42		%				(2.95	)%
Liquid assets including undrawn credit facilities % of total assets	22.21		%	17.98		%	22.32		%	28.24		%	25.70		%				(3.49	)%
(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 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, after retailer share arrangements, plus other income.
(6) Based on customer statement-end balances extrapolated to the respective period-end date.
(7) Allowance coverage ratio represents allowance for loan 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.

2

SYNCHRONY FINANCIAL
STATEMENTS OF EARNINGS
(unaudited, $ in millions)
	Quarter Ended
	Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			1Q'19 vs. 1Q'18
Interest income:
Interest and fees on loans	$	4,687		$	4,774		$	4,617		$	4,081		$	4,172		$	515		12.3	%
Interest on investment securities	99			102			77			93			72			27			37.5	%
Total interest income	4,786			4,876			4,694			4,174			4,244			542			12.8	%
Interest expense:
Interest on deposits	375			350			314			273			249			126			50.6	%
Interest on borrowings of consolidated securitization entities	100			104			86			80			74			26			35.1	%
Interest on third-party debt	85			89			88			84			79			6			7.6	%
Total interest expense	560			543			488			437			402			158			39.3	%
Net interest income	4,226			4,333			4,206			3,737			3,842			384			10.0	%
Retailer share arrangements	(954		)	(855		)	(871		)	(653		)	(720		)	(234		)	32.5	%
Net interest income, after retailer share arrangements	3,272			3,478			3,335			3,084			3,122			150			4.8	%
Provision for loan losses	859			1,452			1,451			1,280			1,362			(503		)	(36.9	)%
Net interest income, after retailer share arrangements and provision for loan losses	2,413			2,026			1,884			1,804			1,760			653			37.1	%
Other income:
Interchange revenue	165			193			182			177			158			7			4.4	%
Debt cancellation fees	68			70			65			66			66			2			3.0	%
Loyalty programs	(167		)	(208		)	(196		)	(192		)	(155		)	(12		)	7.7	%
Other	26			9			12			12			6			20			NM
Total other income	92			64			63			63			75			17			22.7	%
Other expense:
Employee costs	353			353			365			351			358			(5		)	(1.4	)%
Professional fees	232			231			232			177			166			66			39.8	%
Marketing and business development	123			166			131			110			121			2			1.7	%
Information processing	113			118			105			99			104			9			8.7	%
Other	222			210			221			238			239			(17		)	(7.1	)%
Total other expense	1,043			1,078			1,054			975			988			55			5.6	%
Earnings before provision for income taxes	1,462			1,012			893			892			847			615			72.6	%
Provision for income taxes	355			229			222			196			207			148			71.5	%
Net earnings attributable to common shareholders	$	1,107		$	783		$	671		$	696		$	640		$	467		73.0	%

3

SYNCHRONY FINANCIAL
STATEMENTS OF FINANCIAL POSITION
(unaudited, $ in millions)
	Quarter Ended
	Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Mar 31, 2019 vs. Mar 31, 2018
Assets
Cash and equivalents	$	12,963		$	9,396		$	12,068		$	15,675		$	13,044		$	(81	)	(0.6	)%
Debt securities	5,506			6,062			7,281			6,779			6,259			(753		)	(12.0	)%
Loan receivables:
Unsecuritized loans held for investment	54,907			64,969			59,868			50,884			52,469			2,438			4.6	%
Restricted loans of consolidated securitization entities	25,498			28,170			27,653			27,995			25,384			114			0.4	%
Total loan receivables	80,405			93,139			87,521			78,879			77,853			2,552			3.3	%
Less: Allowance for loan losses	(5,942		)	(6,427		)	(6,223		)	(5,859		)	(5,738		)	(204		)	3.6	%
Loan receivables, net	74,463			86,712			81,298			73,020			72,115			2,348			3.3	%
Loan receivables held for sale	8,052			—			—			—			—			8,052			NM
Goodwill	1,076			1,024			1,024			1,024			991			85			8.6	%
Intangible assets, net	1,259			1,137			1,105			863			780			479			61.4	%
Other assets	2,065			2,461			1,769			1,761			2,370			(305		)	(12.9	)%
Total assets	$	105,384		$	106,792		$	104,545		$	99,122		$	95,559		$	9,825		10.3	%
Liabilities and Equity
Deposits:
Interest-bearing deposit accounts	$	63,787		$	63,738		$	62,030		$	58,734		$	56,285		$	7,502		13.3	%
Non-interest-bearing deposit accounts	273			281			287			277			285			(12		)	(4.2	)%
Total deposits	64,060			64,019			62,317			59,011			56,570			7,490			13.2	%
Borrowings:
Borrowings of consolidated securitization entities	12,091			14,439			14,187			12,170			12,214			(123		)	(1.0	)%
Senior unsecured notes	9,800			9,557			9,554			9,551			8,801			999			11.4	%
Total borrowings	21,891			23,996			23,741			21,721			21,015			876			4.2	%
Accrued expenses and other liabilities	4,724			4,099			4,491			3,932			3,618			1,106			30.6	%
Total liabilities	90,675			92,114			90,549			84,664			81,203			9,472			11.7	%
Equity:
Common stock	1			1			1			1			1			—			—	%
Additional paid-in capital	9,489			9,482			9,470			9,486			9,470			19			0.2	%
Retained earnings	9,939			8,986			8,355			7,906			7,334			2,605			35.5	%
Accumulated other comprehensive income:	(56		)	(62		)	(99		)	(93		)	(86		)	30			(34.9	)%
Treasury Stock	(4,664		)	(3,729		)	(3,731		)	(2,842		)	(2,363		)	(2,301		)	97.4	%
Total equity	14,709			14,678			13,996			14,458			14,356			353			2.5	%
Total liabilities and equity	$	105,384		$	106,792		$	104,545		$	99,122		$	95,559		$	9,825		10.3	%

4

SYNCHRONY FINANCIAL
AVERAGE BALANCES, NET INTEREST INCOME AND NET INTEREST MARGIN
(unaudited, $ in millions)
	Quarter Ended
	Mar 31, 2019							Dec 31, 2018							Sep 30, 2018							Jun 30, 2018							Mar 31, 2018
				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	$	11,033		$	65	2.39	%	$	10,856		$	62	2.27	%	$	7,901		$	39	1.96	%	$	13,097		$	59	1.81	%	$	12,434		$	47	1.53	%
Securities available for sale	5,640			34		2.44	%	6,837			40		2.32	%	7,022			38		2.15	%	6,803			34		2.00	%	5,584			25		1.82	%
Loan receivables:
Credit cards, including held for sale	86,768			4,611		21.55	%	86,131			4,695		21.63	%	83,609			4,538		21.53	%	74,809			4,010		21.50	%	76,181			4,099		21.82	%
Consumer installment loans	1,844			42		9.24	%	1,815			42		9.18	%	1,753			41		9.28	%	1,648			37		9.01	%	1,572			36		9.29	%
Commercial credit products	1,252			34		11.01	%	1,344			37		10.92	%	1,355			37		10.83	%	1,346			34		10.13	%	1,286			36		11.35	%
Other	39			—		—	%	50			—		—	%	66			1		NM		50			—		—	%	51			1		NM
Total loan receivables, including held for sale	89,903			4,687		21.14	%	89,340			4,774		21.20	%	86,783			4,617		21.11	%	77,853			4,081		21.03	%	79,090			4,172		21.39	%
Total interest-earning assets	106,576			4,786		18.21	%	107,033			4,876		18.07	%	101,706			4,694		18.31	%	97,753			4,174		17.13	%	97,108			4,244		17.72	%
Non-interest-earning assets:
Cash and due from banks	1,335							1,320							1,217							1,161							1,197
Allowance for loan losses	(6,341		)					(6,259		)					(5,956		)					(5,768		)					(5,608		)
Other assets	3,729							3,688							3,482							3,068							3,010
Total non-interest-earning assets	(1,277		)					(1,251		)					(1,257		)					(1,539		)					(1,401		)
Total assets	$	105,299						$	105,782						$	100,449						$	96,214						$	95,707
Liabilities
Interest-bearing liabilities:
Interest-bearing deposit accounts	$	63,776		$	375	2.38	%	$	62,999		$	350	2.20	%	$	60,123		$	314	2.07	%	$	57,303		$	273	1.91	%	$	56,356		$	249	1.79	%
Borrowings of consolidated securitization entities	13,407			100		3.02	%	14,223			104		2.90	%	12,306			86		2.77	%	11,821			80		2.71	%	12,410			74		2.42	%
Senior unsecured notes	8,892			85		3.88	%	9,554			89		3.70	%	9,552			88		3.66	%	9,114			84		3.70	%	8,795			79		3.64	%
Total interest-bearing liabilities	86,075			560		2.64	%	86,776			543		2.48	%	81,981			488		2.36	%	78,238			437		2.24	%	77,561			402		2.10	%
Non-interest-bearing liabilities
Non-interest-bearing deposit accounts	286							284							275							270							300
Other liabilities	4,148							4,283							3,772							3,299							3,570
Total non-interest-bearing liabilities	4,434							4,567							4,047							3,569							3,870
Total liabilities	90,509							91,343							86,028							81,807							81,431
Equity
Total equity	14,790							14,439							14,421							14,407							14,276
Total liabilities and equity	$	105,299						$	105,782						$	100,449						$	96,214						$	95,707
Net interest income				$	4,226						$	4,333						$	4,206						$	3,737						$	3,842
Interest rate spread(1)						15.57	%						15.59	%						15.95	%						14.89	%						15.62	%
Net interest margin(2)						16.08	%						16.06	%						16.41	%						15.33	%						16.05	%
(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.

5

SYNCHRONY FINANCIAL
BALANCE SHEET STATISTICS
(unaudited, $ in millions, except per share statistics)
	Quarter Ended
	Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Mar 31, 2019 vs. Mar 31, 2018
BALANCE SHEET STATISTICS
Total common equity	$	14,709		$	14,678		$	13,996		$	14,458		$	14,356		$	353		2.5	%
Total common equity as a % of total assets	13.96		%	13.74		%	13.39		%	14.59		%	15.02		%				(1.06	)%
Tangible assets	$	103,049		$	104,631		$	102,416		$	97,235		$	93,788		$	9,261		9.9	%
Tangible common equity(1)	$	12,374		$	12,517		$	11,867		$	12,571		$	12,585		$	(211	)	(1.7	)%
Tangible common equity as a % of tangible assets(1)	12.01		%	11.96		%	11.59		%	12.93		%	13.42		%				(1.41	)%
Tangible common equity per share(1)	$	17.96		$	17.41		$	16.51		$	16.84		$	16.55		$	1.41		8.5	%
REGULATORY CAPITAL RATIOS(2)
	Basel III Fully Phased-in
Total risk-based capital ratio(3)	15.8		%	15.3		%	15.5		%	18.0		%	18.1		%
Tier 1 risk-based capital ratio(4)	14.5		%	14.0		%	14.2		%	16.6		%	16.8		%
Tier 1 leverage ratio(5)	12.3		%	12.3		%	12.3		%	13.6		%	13.7		%
Common equity Tier 1 capital ratio	14.5		%	14.0		%	14.2		%	16.6		%	16.8		%
(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 metrics at March 31, 2019 are preliminary and therefore subject to change.
(3) Total risk-based capital ratio is the ratio of total risk-based capital divided by risk-weighted assets.
(4) Tier 1 risk-based capital ratio is the ratio of Tier 1 capital divided by risk-weighted assets.
(5) 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.

6

SYNCHRONY FINANCIAL
PLATFORM RESULTS
(unaudited, $ in millions)
	Quarter Ended
	Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			1Q'19 vs. 1Q'18
RETAIL CARD(1)
Purchase volume(2)(3)	$	24,660		$	31,755		$	27,863		$	25,926		$	22,141		$	2,519		11.4	%
Period-end loan receivables	$	51,572		$	63,827		$	59,139		$	51,473		$	51,117		$	455		0.9	%
Average loan receivables, including held for sale	$	60,964		$	60,604		$	58,964		$	51,011		$	52,251		$	8,713		16.7	%
Average active accounts (in thousands)(3)(4)	58,632			58,962			57,459			51,680			53,463			5,169			9.7	%
Interest and fees on loans	$	3,454		$	3,502		$	3,383		$	2,915		$	3,015		$	439		14.6	%
Other income	$	76		$	59		$	57		$	54		$	69		$	7		10.1	%
Retailer share arrangements	$	(940	)	$	(825	)	$	(844	)	$	(637	)	$	(708	)	$	(232	)	32.8	%
PAYMENT SOLUTIONS(1)
Purchase volume(2)	$	5,249		$	6,035		$	6,007		$	5,702		$	5,064		$	185		3.7	%
Period-end loan receivables	$	19,379		$	19,815		$	19,064		$	18,320		$	17,927		$	1,452		8.1	%
Average loan receivables, including held for sale	$	19,497		$	19,333		$	18,659		$	17,978		$	18,051		$	1,446		8.0	%
Average active accounts (in thousands)(4)	12,406			12,350			12,062			11,845			12,009			397			3.3	%
Interest and fees on loans	$	686		$	708		$	683		$	644		$	643		$	43		6.7	%
Other income	$	1		$	(2	)	$	(2	)	$	(2	)	$	(2	)	$	3		(150.0	)%
Retailer share arrangements	$	(12	)	$	(25	)	$	(24	)	$	(14	)	$	(10	)	$	(2	)	20.0	%
CARECREDIT
Purchase volume(2)	$	2,604		$	2,530		$	2,573		$	2,640		$	2,421		$	183		7.6	%
Period-end loan receivables	$	9,454		$	9,497		$	9,318		$	9,086		$	8,809		$	645		7.3	%
Average loan receivables	$	9,442		$	9,403		$	9,160		$	8,864		$	8,788		$	654		7.4	%
Average active accounts (in thousands)(4)	6,094			6,070			5,961			5,819			5,851			243			4.2	%
Interest and fees on loans	$	547		$	564		$	551		$	522		$	514		$	33		6.4	%
Other income	$	15		$	7		$	8		$	11		$	8		$	7		87.5	%
Retailer share arrangements	$	(2	)	$	(5	)	$	(3	)	$	(2	)	$	(2	)	$	—		—	%
TOTAL SYF
Purchase volume(2)(3)	$	32,513		$	40,320		$	36,443		$	34,268		$	29,626		$	2,887		9.7	%
Period-end loan receivables	$	80,405		$	93,139		$	87,521		$	78,879		$	77,853		$	2,552		3.3	%
Average loan receivables, including held for sale	$	89,903		$	89,340		$	86,783		$	77,853		$	79,090		$	10,813		13.7	%
Average active accounts (in thousands)(3)(4)	77,132			77,382			75,482			69,344			71,323			5,809			8.1	%
Interest and fees on loans	$	4,687		$	4,774		$	4,617		$	4,081		$	4,172		$	515		12.3	%
Other income	$	92		$	64		$	63		$	63		$	75		$	17		22.7	%
Retailer share arrangements	$	(954	)	$	(855	)	$	(871	)	$	(653	)	$	(720	)	$	(234	)	32.5	%
(1) Beginning in 1Q 2019, our Oil and Gas retail credit programs are now included in our Payment Solutions sales platform. Prior period financial and operating metrics for Retail Card and Payment Solutions have been recast to reflect the current period presentation.
(2) 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.
(3) Includes activity and balances associated with loan receivables held for sale.
(4) Active accounts represent credit card or installment loan accounts on which there has been a purchase, payment or outstanding balance in the current month.

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SYNCHRONY FINANCIAL
RECONCILIATION OF NON-GAAP MEASURES AND CALCULATIONS OF REGULATORY MEASURES(1)
(unaudited, $ in millions, except per share statistics)
	Quarter Ended
	Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018
COMMON EQUITY MEASURES
GAAP Total common equity	$	14,709		$	14,678		$	13,996		$	14,458		$	14,356
Less: Goodwill	(1,076		)	(1,024		)	(1,024		)	(1,024		)	(991		)
Less: Intangible assets, net	(1,259		)	(1,137		)	(1,105		)	(863		)	(780		)
Tangible common equity	$	12,374		$	12,517		$	11,867		$	12,571		$	12,585
Adjustments for certain deferred tax liabilities and certain items in accumulated comprehensive income (loss)	287			284			311			287			278
Basel III - Common equity Tier 1 (fully phased-in)	$	12,661		$	12,801		$	12,178		$	12,858		$	12,863
RISK-BASED CAPITAL
Common equity Tier 1	$	12,661		$	12,801		$	12,178		$	12,858		$	12,863
Add: Allowance for loan losses includible in risk-based capital	1,152			1,211			1,137			1,027			1,015
Risk-based capital	$	13,813		$	14,012		$	13,315		$	13,885		$	13,878
ASSET MEASURES
Total average assets	$	105,299		$	105,782		$	100,449		$	96,214		$	95,707
Adjustments for:
Disallowed goodwill and other disallowed intangible assets (net of related deferred tax liabilities) and other	(2,039		)	(1,845		)	(1,836		)	(1,670		)	(1,560		)
Total assets for leverage purposes	$	103,260		$	103,937		$	98,613		$	94,544		$	94,147
Risk-weighted assets - Basel III (fully phased-in)	$	87,331		$	91,742		$	85,941		$	77,322		$	76,509
TANGIBLE COMMON EQUITY PER SHARE
GAAP book value per share	$	21.35		$	20.42		$	19.47		$	19.37		$	18.88
Less: Goodwill	(1.56		)	(1.42		)	(1.42		)	(1.37		)	(1.30		)
Less: Intangible assets, net	(1.83		)	(1.59		)	(1.54		)	(1.16		)	(1.03		)
Tangible common equity per share	$	17.96		$	17.41		$	16.51		$	16.84		$	16.55
(1) Regulatory measures at March 31, 2019 are presented on an estimated basis.

8