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SYNCHRONY FINANCIAL | | | | | | | | | | | | | | | | | |
SELECTED METRICS | | | | | | | | | | | | | | | | | | | |
(unaudited, $ in millions) | | | | | | | | | | | | | | | | | | | |
| Quarter Ended | | | | | Six Months Ended | | | |
| Jun 30, 2020 | | Mar 31, 2020 | | Dec 31, 2019 | | Sep 30, 2019 | | Jun 30, 2019 | | 2Q'20 vs. 2Q'19 | | Jun 30, 2020 | | Jun 30, 2019 | | YTD'20 vs. YTD'19 |
PERFORMANCE METRICS | | | | | | | | | | | | | | | | | | | |
Return on assets(1) | 0.2 | % | | 1.1 | % | | 2.7 | % | | 3.9 | % | | 3.3 | % | |
|
| (3.1 | )% | | 0.7 | % | | 3.8 | % | |
|
| (3.1 | )% |
Return on equity(2) | 1.6 | % | | 9.1 | % | | 19.0 | % | | 28.3 | % | | 23.1 | % | |
|
| (21.5 | )% | | 5.4 | % | | 26.7 | % | |
|
| (21.3 | )% |
Return on tangible common equity(3) | 1.6 | % | | 11.6 | % | | 23.0 | % | | 33.4 | % | | 27.4 | % | |
|
| (25.8 | )% | | 6.7 | % | | 31.6 | % | |
|
| (24.9 | )% |
Net interest margin(4) | 13.53 | % | | 15.15 | % | | 15.01 | % | | 16.29 | % | | 15.75 | % | |
|
| (2.22 | )% | | 14.35 | % | | 15.92 | % | |
|
| (1.57 | )% |
Efficiency ratio(5) | 36.3 | % | | 32.7 | % | | 34.8 | % | | 30.8 | % | | 31.3 | % | |
|
| 5.0 | % | | 34.4 | % | | 31.1 | % | |
|
| 3.3 | % |
Other expense as a % of average loan receivables, including held for sale | 5.04 | % | | 4.77 | % | | 5.01 | % | | 4.66 | % | | 4.78 | % | |
|
| 0.26 | % | | 4.90 | % | | 4.74 | % | |
|
| 0.16 | % |
Effective income tax rate | 18.6 | % | | 25.1 | % | | 20.6 | % | | 23.2 | % | | 24.4 | % | |
|
| (5.8 | )% | | 24.3 | % | | 24.4 | % | |
|
| (0.1 | )% |
| | | | | | | | | | | | | | | | | | | |
CREDIT QUALITY METRICS | | | | | | | | | | | | | | | | | | | |
Net charge-offs as a % of average loan receivables, including held for sale | 5.35 | % | | 5.36 | % | | 5.15 | % | | 5.35 | % | | 6.01 | % | |
|
| (0.66 | )% | | 5.35 | % | | 6.04 | % | |
|
| (0.69 | )% |
30+ days past due as a % of period-end loan receivables(6) | 3.13 | % | | 4.24 | % | | 4.44 | % | | 4.47 | % | | 4.43 | % | |
|
| (1.30 | )% | | 3.13 | % | | 4.43 | % | |
|
| (1.30 | )% |
90+ days past due as a % of period-end loan receivables(6) | 1.77 | % | | 2.10 | % | | 2.15 | % | | 2.07 | % | | 2.16 | % | |
|
| (0.39 | )% | | 1.77 | % | | 2.16 | % | |
|
| (0.39 | )% |
Net charge-offs | $ | 1,046 |
| | $ | 1,125 |
| | $ | 1,109 |
| | $ | 1,221 |
| | $ | 1,331 |
| | $ | (285 | ) | (21.4 | )% | | $ | 2,171 |
| | $ | 2,675 |
| | $ | (504 | ) | (18.8 | )% |
Loan receivables delinquent over 30 days(6) | $ | 2,453 |
| | $ | 3,500 |
| | $ | 3,874 |
| | $ | 3,723 |
| | $ | 3,625 |
| | $ | (1,172 | ) | (32.3 | )% | | $ | 2,453 |
| | $ | 3,625 |
| | $ | (1,172 | ) | (32.3 | )% |
Loan receivables delinquent over 90 days(6) | $ | 1,384 |
| | $ | 1,735 |
| | $ | 1,877 |
| | $ | 1,723 |
| | $ | 1,768 |
| | $ | (384 | ) | (21.7 | )% | | $ | 1,384 |
| | $ | 1,768 |
| | $ | (384 | ) | (21.7 | )% |
| | | | | | | | | | | | | | | | | | | |
Allowance for credit losses (period-end) | $ | 9,802 |
| | $ | 9,175 |
| | $ | 5,602 |
| | $ | 5,607 |
| | $ | 5,809 |
| | $ | 3,993 |
| 68.7 | % | | $ | 9,802 |
| | $ | 5,809 |
| | $ | 3,993 |
| 68.7 | % |
Allowance coverage ratio(7) | 12.52 | % | | 11.13 | % | | 6.42 | % | | 6.74 | % | | 7.10 | % | |
|
| 5.42 | % | | 12.52 | % | | 7.10 | % | |
|
| 5.42 | % |
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BUSINESS METRICS | | | | | | | | | | | | | | | | | | | |
Purchase volume(8)(9) | $ | 31,155 |
| | $ | 32,042 |
| | $ | 40,212 |
| | $ | 38,395 |
| | $ | 38,291 |
| | $ | (7,136 | ) | (18.6 | )% | | $ | 63,197 |
| | $ | 70,804 |
| | $ | (7,607 | ) | (10.7 | )% |
Period-end loan receivables | $ | 78,313 |
| | $ | 82,469 |
| | $ | 87,215 |
| | $ | 83,207 |
| | $ | 81,796 |
| | $ | (3,483 | ) | (4.3 | )% | | $ | 78,313 |
| | $ | 81,796 |
| | $ | (3,483 | ) | (4.3 | )% |
Credit cards | $ | 75,353 |
| | $ | 79,832 |
| | $ | 84,606 |
| | $ | 79,788 |
| | $ | 78,446 |
| | $ | (3,093 | ) | (3.9 | )% | | $ | 75,353 |
| | $ | 78,446 |
| | $ | (3,093 | ) | (3.9 | )% |
Consumer installment loans | $ | 1,779 |
| | $ | 1,390 |
| | $ | 1,347 |
| | $ | 2,050 |
| | $ | 1,983 |
| | $ | (204 | ) | (10.3 | )% | | $ | 1,779 |
| | $ | 1,983 |
| | $ | (204 | ) | (10.3 | )% |
Commercial credit products | $ | 1,140 |
| | $ | 1,203 |
| | $ | 1,223 |
| | $ | 1,317 |
| | $ | 1,328 |
| | $ | (188 | ) | (14.2 | )% | | $ | 1,140 |
| | $ | 1,328 |
| | $ | (188 | ) | (14.2 | )% |
Other | $ | 41 |
| | $ | 44 |
| | $ | 39 |
| | $ | 52 |
| | $ | 39 |
| | $ | 2 |
| 5.1 | % | | $ | 41 |
| | $ | 39 |
| | $ | 2 |
| 5.1 | % |
Average loan receivables, including held for sale | $ | 78,697 |
| | $ | 84,428 |
| | $ | 85,376 |
| | $ | 90,556 |
| | $ | 88,792 |
| | $ | (10,095 | ) | (11.4 | )% | | $ | 81,563 |
| | $ | 89,344 |
| | $ | (7,781 | ) | (8.7 | )% |
Period-end active accounts (in thousands)(9)(10) | 63,430 |
| | 68,849 |
| | 75,471 |
| | 77,094 |
| | 76,065 |
| | (12,635 | ) | (16.6 | )% | | 63,430 |
| | 76,065 |
| | (12,635 | ) | (16.6 | )% |
Average active accounts (in thousands)(9)(10) | 64,836 |
| | 72,078 |
| | 73,734 |
| | 76,695 |
| | 75,525 |
| | (10,689 | ) | (14.2 | )% | | 68,401 |
| | 76,545 |
| | (8,144 | ) | (10.6 | )% |
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LIQUIDITY | | | | | | | | | | | | | | | | | | | |
Liquid assets | | | | | | | | | | | | | | | | | | | |
Cash and equivalents | $ | 16,344 |
| | $ | 13,704 |
| | $ | 12,147 |
| | $ | 11,461 |
| | $ | 11,755 |
| | $ | 4,589 |
| 39.0 | % | | $ | 16,344 |
| | $ | 11,755 |
| | $ | 4,589 |
| 39.0 | % |
Total liquid assets | $ | 22,352 |
| | $ | 19,225 |
| | $ | 17,322 |
| | $ | 15,201 |
| | $ | 16,665 |
| | $ | 5,687 |
| 34.1 | % | | $ | 22,352 |
| | $ | 16,665 |
| | $ | 5,687 |
| 34.1 | % |
Undrawn credit facilities | | | | | | | | | | | | | | | | | | | |
Undrawn credit facilities | $ | 5,650 |
| | $ | 5,600 |
| | $ | 6,050 |
| | $ | 6,500 |
| | $ | 7,050 |
| | $ | (1,400 | ) | (19.9 | )% | | $ | 5,650 |
| | $ | 7,050 |
| | $ | (1,400 | ) | (19.9 | )% |
Total liquid assets and undrawn credit facilities | $ | 28,002 |
| | $ | 24,825 |
| | $ | 23,372 |
| | $ | 21,701 |
| | $ | 23,715 |
| | $ | 4,287 |
| 18.1 | % | | $ | 28,002 |
| | $ | 23,715 |
| | $ | 4,287 |
| 18.1 | % |
Liquid assets % of total assets | 23.15 | % | | 19.61 | % | | 16.52 | % | | 14.35 | % | | 15.66 | % | |
|
| 7.49 | % | | 23.15 | % | | 15.66 | % | |
|
| 7.49 | % |
Liquid assets including undrawn credit facilities % of total assets | 29.00 | % | | 25.32 | % | | 22.30 | % | | 20.48 | % | | 22.29 | % | |
|
| 6.71 | % | | 29.00 | % | | 22.29 | % | |
|
| 6.71 | % |
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| | | | | | | | | | | | | | | | | | | |
(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. | | | | | | | |