Synchrony Financial (SYF) 8-K Results of Operations and Financial Condition

Exhibit 99.2

SYNCHRONY FINANCIAL
FINANCIAL SUMMARY
(unaudited, in millions, except per share statistics)
	Quarter Ended														Nine Months Ended
	Sep 30, 2022		June 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		3Q'22 vs. 3Q'22				Sep 30, 2022		Sep 30, 2021		YTD'22 vs. YTD'21
EARNINGS
Net interest income	$	3,928	$	3,802	$	3,789	$	3,830	$	3,658	$	270	7.4	%	$	11,519	$	10,409	$	1,110	10.7	%
Retailer share arrangements	(1,057)		(1,127)		(1,104)		(1,267)		(1,266)		209		(16.5)	%	(3,288)		(3,261)		(27)		0.8	%
Provision for credit losses	929		724		521		561		25		904		NM		2,174		165		2,009		NM
Net interest income, after retailer share arrangements and provision for credit losses	1,942		1,951		2,164		2,002		2,367		(425)		(18.0)	%	6,057		6,983		(926)		(13.3)	%
Other income	44		198		108		167		94		(50)		(53.2)	%	350		314		36		11.5	%
Other expense	1,064		1,083		1,039		1,122		961		103		10.7	%	3,186		2,841		345		12.1	%
Earnings before provision for income taxes	922		1,066		1,233		1,047		1,500		(578)		(38.5)	%	3,221		4,456		(1,235)		(27.7)	%
Provision for income taxes	219		262		301		234		359		(140)		(39.0)	%	782		1,048		(266)		(25.4)	%
Net earnings	$	703	$	804	$	932	$	813	$	1,141	$	(438)	(38.4)	%	$	2,439	$	3,408	$	(969)	(28.4)	%
Net earnings available to common stockholders	$	692	$	793	$	922	$	803	$	1,130	$	(438)	(38.8)	%	$	2,407	$	3,376	$	(969)	(28.7)	%
COMMON SHARE STATISTICS
Basic EPS	$	1.48	$	1.61	$	1.79	$	1.49	$	2.02	$	(0.54)	(26.7)	%	$	4.89	$	5.89	$	(1.00)	(17.0)	%
Diluted EPS	$	1.47	$	1.60	$	1.77	$	1.48	$	2.00	$	(0.53)	(26.5)	%	$	4.86	$	5.84	$	(0.98)	(16.8)	%
Dividend declared per share	$	0.23	$	0.22	$	0.22	$	0.22	$	0.22	$	0.01	4.5	%	$	0.67	$	0.66	$	0.01	1.5	%
Common stock price	$	28.19	$	27.62	$	34.82	$	46.39	$	48.88	$	(20.69)	(42.3)	%	$	28.19	$	48.88	$	(20.69)	(42.3)	%
Book value per share	$	26.76	$	25.95	$	25.06	$	24.53	$	24.13	$	2.63	10.9	%	$	26.76	$	24.13	$	2.63	10.9	%
Tangible common equity per share(1)	$	22.10	$	21.39	$	20.60	$	20.21	$	20.12	$	1.98	9.8	%	$	22.10	$	20.12	$	1.98	9.8	%
Beginning common shares outstanding	487.8		506.2		526.8		547.2		573.4		(85.6)		(14.9)	%	526.8		584.0		(57.2)		(9.8)	%
Issuance of common shares	—		—		—		—		—		—		—	%	—		—		—		—	%
Stock-based compensation	0.4		0.2		1.4		0.1		0.5		(0.1)		(20.0)	%	2.0		3.7		(1.7)		(45.9)	%
Shares repurchased	(29.3)		(18.6)		(22.0)		(20.5)		(26.7)		(2.6)		9.7	%	(69.9)		(40.5)		(29.4)		72.6	%
Ending common shares outstanding	458.9		487.8		506.2		526.8		547.2		(88.3)		(16.1)	%	458.9		547.2		(88.3)		(16.1)	%
Weighted average common shares outstanding	468.5		493.0		515.3		537.8		560.6		(92.1)		(16.4)	%	492.1		573.6		(81.5)		(14.2)	%
Weighted average common shares outstanding (fully diluted)	470.7		495.3		519.5		543.0		565.6		(94.9)		(16.8)	%	495.0		578.2		(83.2)		(14.4)	%
(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)
	Quarter Ended																			Nine Months Ended
	Sep 30, 2022			June 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			3Q'22 vs. 3Q'21				Sep 30, 2022			Sep 30, 2021			YTD'22 vs. YTD'21
PERFORMANCE METRICS
Return on assets(1)	2.8		%	3.4		%	4.0		%	3.4		%	4.9		%			(2.1)	%	3.4		%	4.9		%			(1.5)	%
Return on equity(2)	21.1		%	24.0		%	27.5		%	23.0		%	32.1		%			(11.0)	%	24.2		%	33.5		%			(9.3)	%
Return on tangible common equity(3)	26.6		%	30.3		%	34.9		%	28.7		%	40.1		%			(13.5)	%	30.6		%	42.4		%			(11.8)	%
Net interest margin(4)	15.52		%	15.60		%	15.80		%	15.77		%	15.45		%			0.07	%	15.64		%	14.40		%			1.24	%
Efficiency ratio(5)	36.5		%	37.7		%	37.2		%	41.1		%	38.7		%			(2.2)	%	37.1		%	38.1		%			(1.0)	%
Other expense as a % of average loan receivables, including held for sale	5.02		%	5.21		%	5.09		%	5.44		%	4.84		%			0.18	%	5.11		%	4.87		%			0.24	%
Effective income tax rate	23.8		%	24.6		%	24.4		%	22.3		%	23.9		%			(0.1)	%	24.3		%	23.5		%			0.8	%
CREDIT QUALITY METRICS
Net charge-offs as a % of average loan receivables, including held for sale	3.00		%	2.73		%	2.73		%	2.37		%	2.18		%			0.82	%	2.82		%	3.11		%			(0.29)	%
30+ days past due as a % of period-end loan receivables(6)	3.28		%	2.74		%	2.78		%	2.62		%	2.42		%			0.86	%	3.28		%	2.42		%			0.86	%
90+ days past due as a % of period-end loan receivables(6)	1.43		%	1.22		%	1.30		%	1.17		%	1.05		%			0.38	%	1.43		%	1.05		%			0.38	%
Net charge-offs	$	635		$	567		$	558		$	489		$	432		$	203	47.0	%	$	1,760		$	1,815		$	(55)	(3.0)	%
Loan receivables delinquent over 30 days(6)	$	2,818		$	2,262		$	2,194		$	2,114		$	1,850		$	968	52.3	%	$	2,818		$	1,850		$	968	52.3	%
Loan receivables delinquent over 90 days(6)	$	1,232		$	1,005		$	1,026		$	942		$	804		$	428	53.2	%	$	1,232		$	804		$	428	53.2	%
Allowance for credit losses (period-end)	$	9,102		$	8,808		$	8,651		$	8,688		$	8,616		$	486	5.6	%	$	9,102		$	8,616		$	486	5.6	%
Allowance coverage ratio(7)	10.58		%	10.65		%	10.96		%	10.76		%	11.28		%			(0.70)	%	10.58		%	11.28		%			(0.70)	%
BUSINESS METRICS
Purchase volume(8)(9)	$	44,557		$	47,217		$	40,490		$	47,072		$	41,912		$	2,645	6.3	%	$	132,264		$	118,782		$	13,482	11.4	%
Period-end loan receivables	$	86,012		$	82,674		$	78,916		$	80,740		$	76,388		$	9,624	12.6	%	$	86,012		$	76,388		$	9,624	12.6	%
Credit cards	$	81,254		$	78,062		$	74,596		$	76,628		$	72,289		$	8,965	12.4	%	$	81,254		$	72,289		$	8,965	12.4	%
Consumer installment loans	$	2,945		$	2,847		$	2,719		$	2,675		$	2,614		$	331	12.7	%	$	2,945		$	2,614		$	331	12.7	%
Commercial credit products	$	1,723		$	1,689		$	1,530		$	1,372		$	1,401		$	322	23.0	%	$	1,723		$	1,401		$	322	23.0	%
Other	$	90		$	76		$	71		$	65		$	84		$	6	7.1	%	$	90		$	84		$	6	7.1	%
Average loan receivables, including held for sale	$	84,038		$	83,412		$	82,747		$	81,784		$	78,714		$	5,324	6.8	%	$	83,404		$	77,965		$	5,439	7.0	%
Period-end active accounts (in thousands)(9)(10)	66,503			65,969			69,122			72,420			67,245			(742)		(1.1)	%	66,503			67,245			(742)		(1.1)	%
Average active accounts (in thousands)(9)(10)	66,266			68,671			70,127			69,397			67,189			(923)		(1.4)	%	68,517			66,500			2,017		3.0	%
LIQUIDITY
Liquid assets
Cash and equivalents	$	11,962		$	10,682		$	10,541		$	8,337		$	9,806		$	2,156	22.0	%	$	11,962		$	9,806		$	2,156	22.0	%
Total liquid assets	$	16,566		$	15,177		$	14,687		$	12,989		$	14,664		$	1,902	13.0	%	$	16,566		$	14,664		$	1,902	13.0	%
Undrawn credit facilities
Undrawn credit facilities	$	3,700		$	3,700		$	3,100		$	2,700		$	3,700		$	—	—	%	$	3,700		$	3,700		$	—	—	%
Total liquid assets and undrawn credit facilities	$	20,266		$	18,877		$	17,787		$	15,689		$	18,364		$	1,902	10.4	%	$	20,266		$	18,364		$	1,902	10.4	%
Liquid assets % of total assets	16.44		%	15.94		%	15.42		%	13.57		%	15.95		%			0.49	%	16.44		%	15.95		%			0.49	%
Liquid assets including undrawn credit facilities % of total assets	20.11		%	19.83		%	18.67		%	16.39		%	19.97		%			0.14	%	20.11		%	19.97		%			0.14	%
(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.

2

SYNCHRONY FINANCIAL
STATEMENTS OF EARNINGS
(unaudited, $ in millions)
	Quarter Ended														Nine Months Ended
	Sep 30, 2022		June 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		3Q'22 vs. 3Q'21				Sep 30, 2022		Sep 30, 2021		YTD'22 vs. YTD'21
Interest income:
Interest and fees on loans	$	4,258	$	4,039	$	4,008	$	4,042	$	3,887	$	371	9.5	%	$	12,305	$	11,186	$	1,119	10.0	%
Interest on cash and debt securities	84		35		14		11		11		73		NM		133		32		101		NM
Total interest income	4,342		4,074		4,022		4,053		3,898		444		11.4	%	12,438		11,218		1,220		10.9	%
Interest expense:
Interest on deposits	280		160		127		119		131		149		113.7	%	567		447		120		26.8	%
Interest on borrowings of consolidated securitization entities	54		40		33		33		41		13		31.7	%	127		136		(9)		(6.6)	%
Interest on senior unsecured notes	80		72		73		71		68		12		17.6	%	225		226		(1)		(0.4)	%
Total interest expense	414		272		233		223		240		174		72.5	%	919		809		110		13.6	%
Net interest income	3,928		3,802		3,789		3,830		3,658		270		7.4	%	11,519		10,409		1,110		10.7	%
Retailer share arrangements	(1,057)		(1,127)		(1,104)		(1,267)		(1,266)		209		(16.5)	%	(3,288)		(3,261)		(27)		0.8	%
Provision for credit losses	929		724		521		561		25		904		NM		2,174		165		2,009		NM
Net interest income, after retailer share arrangements and provision for credit losses	1,942		1,951		2,164		2,002		2,367		(425)		(18.0)	%	6,057		6,983		(926)		(13.3)	%
Other income:
Interchange revenue	238		263		230		254		232		6		2.6	%	731		626		105		16.8	%
Debt cancellation fees	103		93		89		79		70		33		47.1	%	285		205		80		39.0	%
Loyalty programs	(326)		(322)		(258)		(310)		(256)		(70)		27.3	%	(906)		(682)		(224)		32.8	%
Other	29		164		47		144		48		(19)		(39.6)	%	240		165		75		45.5	%
Total other income	44		198		108		167		94		(50)		(53.2)	%	350		314		36		11.5	%
Other expense:
Employee costs	416		404		402		409		369		47		12.7	%	1,222		1,092		130		11.9	%
Professional fees	204		185		210		207		196		8		4.1	%	599		575		24		4.2	%
Marketing and business development	115		135		116		167		110		5		4.5	%	366		319		47		14.7	%
Information processing	150		163		145		143		139		11		7.9	%	458		407		51		12.5	%
Other	179		196		166		196		147		32		21.8	%	541		448		93		20.8	%
Total other expense	1,064		1,083		1,039		1,122		961		103		10.7	%	3,186		2,841		345		12.1	%
Earnings before provision for income taxes	922		1,066		1,233		1,047		1,500		(578)		(38.5)	%	3,221		4,456		(1,235)		(27.7)	%
Provision for income taxes	219		262		301		234		359		(140)		(39.0)	%	782		1,048		(266)		(25.4)	%
Net earnings	$	703	$	804	$	932	$	813	$	1,141	$	(438)	(38.4)	%	$	2,439	$	3,408	$	(969)	(28.4)	%
Net earnings available to common stockholders	$	692	$	793	$	922	$	803	$	1,130	$	(438)	(38.8)	%	$	2,407	$	3,376	$	(969)	(28.7)	%

3

SYNCHRONY FINANCIAL
STATEMENTS OF FINANCIAL POSITION
(unaudited, $ in millions)
	Quarter Ended
	Sep 30, 2022		June 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Sep 30, 2022 vs. Sep 30, 2021
Assets
Cash and equivalents	$	11,962	$	10,682	$	10,541	$	8,337	$	9,806	$	2,156	22.0	%
Debt securities	5,082		5,012		4,677		5,283		5,444		(362)		(6.6)	%
Loan receivables:
Unsecuritized loans held for investment	67,651		63,350		59,643		60,211		56,745		10,906		19.2	%
Restricted loans of consolidated securitization entities	18,361		19,324		19,273		20,529		19,643		(1,282)		(6.5)	%
Total loan receivables	86,012		82,674		78,916		80,740		76,388		9,624		12.6	%
Less: Allowance for credit losses	(9,102)		(8,808)		(8,651)		(8,688)		(8,616)		(486)		5.6	%
Loan receivables, net	76,910		73,866		70,265		72,052		67,772		9,138		13.5	%
Loan receivables held for sale	—		—		4,046		4,361		3,450		(3,450)		(100.0)	%
Goodwill	1,105		1,105		1,105		1,105		1,105		—		—	%
Intangible assets, net	1,033		1,118		1,149		1,168		1,090		(57)		(5.2)	%
Other assets	4,674		3,417		3,484		3,442		3,270		1,404		42.9	%
Total assets	$	100,766	$	95,200	$	95,267	$	95,748	$	91,937	$	8,829	9.6	%
Liabilities and Equity
Deposits:
Interest-bearing deposit accounts	$	68,032	$	64,328	$	63,180	$	61,911	$	59,998	$	8,034	13.4	%
Non-interest-bearing deposit accounts	372		381		395		359		355		17		4.8	%
Total deposits	68,404		64,709		63,575		62,270		60,353		8,051		13.3	%
Borrowings:
Borrowings of consolidated securitization entities	6,360		5,687		6,139		7,288		6,288		72		1.1	%
Senior unsecured notes	7,961		6,470		7,221		7,219		6,472		1,489		23.0	%
Total borrowings	14,321		12,157		13,360		14,507		12,760		1,561		12.2	%
Accrued expenses and other liabilities	5,029		4,941		4,914		5,316		4,888		141		2.9	%
Total liabilities	87,754		81,807		81,849		82,093		78,001		9,753		12.5	%
Equity:
Preferred stock	734		734		734		734		734		—		—	%
Common stock	1		1		1		1		1		—		—	%
Additional paid-in capital	9,685		9,663		9,643		9,669		9,649		36		0.4	%
Retained earnings	16,252		15,679		15,003		14,245		13,562		2,690		19.8	%
Accumulated other comprehensive income (loss)	(187)		(149)		(121)		(69)		(64)		(123)		192.2	%
Treasury stock	(13,473)		(12,535)		(11,842)		(10,925)		(9,946)		(3,527)		35.5	%
Total equity	13,012		13,393		13,418		13,655		13,936		(924)		(6.6)	%
Total liabilities and equity	$	100,766	$	95,200	$	95,267	$	95,748	$	91,937	$	8,829	9.6	%

4

SYNCHRONY FINANCIAL
AVERAGE BALANCES, NET INTEREST INCOME AND NET INTEREST MARGIN
(unaudited, $ in millions)
	Quarter Ended
	Sep 30, 2022						Jun 30, 2022						Mar 31, 2022						Dec 31, 2021						Sep 30, 2021
			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	$	11,506	$	65	2.24	%	$	9,249	$	20	0.87	%	$	8,976	$	5	0.23	%	$	9,024	$	4	0.18	%	$	9,559	$	3	0.12	%
Securities available for sale	4,861		19		1.55	%	5,063		15		1.19	%	5,513		9		0.66	%	5,517		7		0.50	%	5,638		8		0.56	%
Loan receivables, including held for sale:
Credit cards	79,354		4,153		20.76	%	78,912		3,943		20.04	%	78,564		3,913		20.20	%	77,642		3,946		20.16	%	74,686		3,793		20.15	%
Consumer installment loans	2,884		74		10.18	%	2,775		69		9.97	%	2,682		66		9.98	%	2,641		65		9.76	%	2,555		64		9.94	%
Commercial credit products	1,720		30		6.92	%	1,654		25		6.06	%	1,434		28		7.92	%	1,434		30		8.30	%	1,407		29		8.18	%
Other	80		1		4.96		71		2		11.30		67		1		NM		67		1		NM		66		1		NM
Total loan receivables, including held for sale	84,038		4,258		20.10	%	83,412		4,039		19.42	%	82,747		4,008		19.64	%	81,784		4,042		19.61	%	78,714		3,887		19.59	%
Total interest-earning assets	100,405		4,342		17.16	%	97,724		4,074		16.72	%	97,236		4,022		16.78	%	96,325		4,053		16.69	%	93,911		3,898		16.47	%
Non-interest-earning assets:
Cash and due from banks	1,580						1,614						1,626						1,606						1,588
Allowance for credit losses	(8,878)						(8,651)						(8,675)						(8,648)						(8,956)
Other assets	5,587						5,386						5,369						5,424						5,405
Total non-interest-earning assets	(1,711)						(1,651)						(1,680)						(1,618)						(1,963)
Total assets	$	98,694					$	96,073					$	95,556					$	94,707					$	91,948
Liabilities
Interest-bearing liabilities:
Interest-bearing deposit accounts	$	66,787	$	280	1.66	%	$	63,961	$	160	1.00	%	$	62,314	$	127	0.83	%	$	61,090	$	119	0.77	%	$	59,275	$	131	0.88	%
Borrowings of consolidated securitization entities	6,258		54		3.42	%	6,563		40		2.44	%	6,827		33		1.96	%	7,105		33		1.84	%	7,051		41		2.31	%
Senior unsecured notes	7,102		80		4.47	%	6,974		72		4.14	%	7,219		73		4.10	%	6,999		71		4.02	%	6,471		68		4.17	%
Total interest-bearing liabilities	80,147		414		2.05	%	77,498		272		1.41	%	76,360		233		1.24	%	75,194		223		1.18	%	72,797		240		1.31	%
Non-interest-bearing liabilities
Non-interest-bearing deposit accounts	371						396						374						343						358
Other liabilities	4,938						4,717						5,091						5,137						4,676
Total non-interest-bearing liabilities	5,309						5,113						5,465						5,480						5,034
Total liabilities	85,456						82,611						81,825						80,674						77,831
Equity
Total equity	13,238						13,462						13,731						14,033						14,117
Total liabilities and equity	$	98,694					$	96,073					$	95,556					$	94,707					$	91,948
Net interest income			$	3,928					$	3,802					$	3,789					$	3,830					$	3,658
Interest rate spread(1)					15.11	%					15.31	%					15.54	%					15.51	%					15.16	%
Net interest margin(2)					15.52	%					15.60	%					15.80	%					15.77	%					15.45	%
(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
AVERAGE BALANCES, NET INTEREST INCOME AND NET INTEREST MARGIN
(unaudited, $ in millions)
	Nine Months Ended Sep 30, 2022						Nine Months Ended Sep 30, 2021
			Interest		Average				Interest		Average
	Average		Income/		Yield/		Average		Income/		Yield/
	Balance		Expense		Rate		Balance		Expense		Rate
Assets
Interest-earning assets:
Interest-earning cash and equivalents	$	9,920	$	90	1.21	%	$	12,567	$	11	0.12	%
Securities available for sale	5,143		43		1.12	%	6,128		21		0.46	%
Loan receivables, including held for sale:
Credit cards	78,946		12,009		20.34	%	74,179		10,934		19.71	%
Consumer installment loans	2,781		209		10.05	%	2,398		176		9.81	%
Commercial credit products	1,604		83		6.92	%	1,334		73		7.32	%
Other	73		4		7.33	%	54		3		7.43	%
Total loan receivables, including held for sale	83,404		12,305		19.73	%	77,965		11,186		19.18	%
Total interest-earning assets	98,467		12,438		16.89	%	96,660		11,218		15.52	%
Non-interest-earning assets:
Cash and due from banks	1,607						1,594
Allowance for loan losses	(8,735)						(9,656)
Other assets	5,447						5,317
Total non-interest-earning assets	(1,681)						(2,745)
Total assets	$	96,786					$	93,915
Liabilities
Interest-bearing liabilities:
Interest-bearing deposit accounts	$	64,371	$	567	1.18	%	$	60,907	$	447	0.98	%
Borrowings of consolidated securitization entities	6,547		127		2.59	%	7,296		136		2.49	%
Senior unsecured notes	7,098		225		4.24	%	7,232		226		4.18	%
Total interest-bearing liabilities	78,016		919		1.57	%	75,435		809		1.43	%
Non-interest-bearing liabilities
Non-interest-bearing deposit accounts	380						351
Other liabilities	4,915						4,510
Total non-interest-bearing liabilities	5,295						4,861
Total liabilities	83,311						80,296
Equity
Total equity	13,475						13,619
Total liabilities and equity	$	96,786					$	93,915
Net interest income			$	11,519					$	10,409
Interest rate spread(1)					15.32	%					14.09	%
Net interest margin(2)					15.64	%					14.40	%
(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.

6

SYNCHRONY FINANCIAL
BALANCE SHEET STATISTICS
(unaudited, $ in millions, except per share statistics)
	Quarter Ended
	Sep 30, 2022			June 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Sep 30, 2022 vs. Sep 30, 2021
BALANCE SHEET STATISTICS
Total common equity	$	12,278		$	12,659		$	12,684		$	12,921		$	13,202		$	(924)	(7.0)	%
Total common equity as a % of total assets	12.18		%	13.30		%	13.31		%	13.49		%	14.36		%			(2.18)	%
Tangible assets	$	98,628		$	92,977		$	93,013		$	93,475		$	89,742		$	8,886	9.9	%
Tangible common equity(1)	$	10,140		$	10,436		$	10,430		$	10,648		$	11,007		$	(867)	(7.9)	%
Tangible common equity as a % of tangible assets(1)	10.28		%	11.22		%	11.21		%	11.39		%	12.27		%			(1.99)	%
Tangible common equity per share(1)	$	22.10		$	21.39		$	20.60		$	20.21		$	20.12		$	1.98	9.8	%
REGULATORY CAPITAL RATIOS(2)(3)
	Basel III - CECL Transition
Total risk-based capital ratio(4)	16.5		%	17.4		%	17.2		%	17.8		%	19.3		%
Tier 1 risk-based capital ratio(5)	15.2		%	16.1		%	15.9		%	16.5		%	18.0		%
Tier 1 leverage ratio(6)	13.2		%	13.8		%	13.9		%	14.7		%	15.5		%
Common equity Tier 1 capital ratio	14.3		%	15.2		%	15.0		%	15.6		%	17.1		%
(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 ratios at September 30, 2022 are preliminary and therefore subject to change.
(3) Capital ratios starting March 31, 2020 reflect election to delay for two years an estimate of CECL’s effect on regulatory capital in accordance with the interim final rule issued by U.S. banking agencies in March 2020. Beginning in the first quarter of 2022, the effects are now being phased-in over a three-year transitional period through 2024.
(4) Total risk-based capital ratio is the ratio of total risk-based capital divided by risk-weighted assets.
(5) Tier 1 risk-based capital ratio is the ratio of Tier 1 capital divided by risk-weighted assets.
(6) Tier 1 leverage ratio is the ratio of Tier 1 capital divided by total average assets, after certain adjustments.

7

SYNCHRONY FINANCIAL
PLATFORM RESULTS
(unaudited, $ in millions)
	Quarter Ended														Nine Months Ended
	Sep 30, 2022		June 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		3Q'22 vs. 3Q'21				Sep 30, 2022		Sep 30, 2021		YTD'22vs. YTD'21
HOME & AUTO(6)
Purchase volume(1)	$	12,273	$	12,895	$	10,260	$	10,919	$	11,069	$	1,204	10.9	%	$	35,428	$	31,929	$	3,499	11.0	%
Period-end loan receivables	$	29,017	$	27,989	$	26,532	$	26,781	$	26,210	$	2,807	10.7	%	$	29,017	$	26,210	$	2,807	10.7	%
Average loan receivables, including held for sale	$	28,387	$	27,106	$	26,406	$	26,455	$	25,800	$	2,587	10.0	%	$	27,307	$	25,396	$	1,911	7.5	%
Average active accounts (in thousands)(3)	18,350		17,942		17,473		17,655		17,516		834		4.8	%	17,923		17,326		597		3.4	%
Interest and fees on loans	$	1,210	$	1,108	$	1,088	$	1,126	$	1,092	$	118	10.8	%	$	3,406	$	3,121	$	285	9.1	%
Other income	$	20	$	23	$	21	$	18	$	18	$	2	11.1	%	$	64	$	51	$	13	25.5	%
DIGITAL
Purchase volume(1)	$	12,941	$	12,463	$	11,196	$	13,451	$	10,980	$	1,961	17.9	%	$	36,600	$	31,250	$	5,350	17.1	%
Period-end loan receivables	$	22,925	$	21,842	$	21,075	$	21,751	$	19,636	$	3,289	16.7	%	$	22,925	$	19,636	$	3,289	16.7	%
Average loan receivables, including held for sale	$	22,361	$	21,255	$	21,160	$	20,388	$	19,286	$	3,075	15.9	%	$	21,596	$	19,168	$	2,428	12.7	%
Average active accounts (in thousands)(3)	19,418		19,069		19,000		18,375		17,655		1,763		10.0	%	19,176		17,426		1,750		10.0	%
Interest and fees on loans	$	1,197	$	1,058	$	1,022	$	1,025	$	973	$	224	23.0	%	$	3,277	$	2,767	$	510	18.4	%
Other income	$	(22)	$	(13)	$	(12)	$	(28)	$	(19)	$	(3)	15.8	%	$	(47)	$	(59)	$	12	(20.3)	%
DIVERSIFIED & VALUE
Purchase volume(1)	$	14,454	$	14,388	$	11,558	$	14,154	$	12,006	$	2,448	20.4	%	$	40,400	$	32,844	$	7,556	23.0	%
Period-end loan receivables	$	16,566	$	16,076	$	15,166	$	16,075	$	14,415	$	2,151	14.9	%	$	16,566	$	14,415	$	2,151	14.9	%
Average loan receivables, including held for sale	$	16,243	$	15,498	$	15,128	$	14,999	$	14,328	$	1,915	13.4	%	$	15,627	$	14,333	$	1,294	9.0	%
Average active accounts (in thousands)(3)	19,411		19,026		19,201		18,829		17,903		1,508		8.4	%	19,258		17,591		1,667		9.5	%
Interest and fees on loans	$	935	$	826	$	826	$	817	$	780	$	155	19.9	%	$	2,587	$	2,298	$	289	12.6	%
Other income	$	(19)	$	(35)	$	(9)	$	(23)	$	(8)	$	(11)	137.5	%	$	(63)	$	(5)	$	(58)	NM
HEALTH & WELLNESS
Purchase volume(1)	$	3,514	$	3,443	$	3,107	$	3,055	$	3,024	$	490	16.2	%	$	10,064	$	8,660	$	1,404	16.2	%
Period-end loan receivables	$	11,590	$	10,932	$	10,407	$	10,244	$	9,879	$	1,711	17.3	%	$	11,590	$	9,879	$	1,711	17.3	%
Average loan receivables, including held for sale	$	11,187	$	10,596	$	10,251	$	10,057	$	9,654	$	1,533	15.9	%	$	10,681	$	9,477	$	1,204	12.7	%
Average active accounts (in thousands)(3)	6,411		6,177		6,027		5,922		5,707		704		12.3	%	6,207		5,673		534		9.4	%
Interest and fees on loans	$	706	$	644	$	616	$	603	$	587	$	119	20.3	%	$	1,966	$	1,668	$	298	17.9	%
Other income	$	55	$	49	$	53	$	42	$	41	$	14	34.1	%	$	157	$	117	$	40	34.2	%
LIFESTYLE
Purchase volume(1)	$	1,374	$	1,431	$	1,195	$	1,462	$	1,298	$	76	5.9	%	$	4,000	$	3,857	$	143	3.7	%
Period-end loan receivables	$	5,686	$	5,558	$	5,381	$	5,479	$	5,234	$	452	8.6	%	$	5,686	$	5,234	$	452	8.6	%
Average loan receivables, including held for sale	$	5,610	$	5,443	$	5,379	$	5,297	$	5,185	$	425	8.2	%	$	5,478	$	5,080	$	398	7.8	%
Average active accounts (in thousands)(3)	2,524		2,510		2,582		2,548		2,465		59		2.4	%	2,546		2,500		46		1.8	%
Interest and fees on loans	$	208	$	194	$	191	$	194	$	187	$	21	11.2	%	$	593	$	550	$	43	7.8	%
Other income	$	8	$	7	$	6	$	6	$	6	$	2	33.3	%	$	21	$	17	$	4	23.5	%
CORP, OTHER(4)(6)
Purchase volume(1)(2)	$	1	$	2,597	$	3,174	$	4,031	$	3,535	$	(3,534)	(100.0)	%	$	5,772	$	10,242	$	(4,470)	(43.6)	%
Period-end loan receivables(5)	$	228	$	277	$	355	$	410	$	1,014	$	(786)	(77.5)	%	$	228	$	1,014	$	(786)	(77.5)	%
Average loan receivables, including held for sale	$	250	$	3,514	$	4,423	$	4,588	$	4,461	$	(4,211)	(94.4)	%	$	2,715	$	4,511	$	(1,796)	(39.8)	%
Average active accounts (in thousands)(2)(3)	152		3,947		5,844		6,068		5,943		(5,791)		(97.4)	%	3,407		5,984		(2,577)		(43.1)	%
Interest and fees on loans	$	2	$	209	$	265	$	277	$	268	$	(266)	(99.3)	%	$	476	$	782	$	(306)	(39.1)	%
Other income	$	2	$	167	$	49	$	152	$	56	$	(54)	(96.4)	%	$	218	$	193	$	25	13.0	%
TOTAL SYF
Purchase volume(1)(2)	$	44,557	$	47,217	$	40,490	$	47,072	$	41,912	$	2,645	6.3	%	$	132,264	$	118,782	$	13,482	11.4	%
Period-end loan receivables(5)	$	86,012	$	82,674	$	78,916	$	80,740	$	76,388	$	9,624	12.6	%	$	86,012	$	76,388	$	9,624	12.6	%
Average loan receivables, including held for sale	$	84,038	$	83,412	$	82,747	$	81,784	$	78,714	$	5,324	6.8	%	$	83,404	$	77,965	$	5,439	7.0	%
Average active accounts (in thousands)(2)(3)	66,266		68,671		70,127		69,397		67,189		(923)		(1.4)	%	68,517		66,500		2,017		3.0	%
Interest and fees on loans	$	4,258	$	4,039	$	4,008	$	4,042	$	3,887	$	371	9.5	%	$	12,305	$	11,186	$	1,119	10.0	%
Other income	$	44	$	198	$	108	$	167	$	94	$	(50)	(53.2)	%	$	350	$	314	$	36	11.5	%
(1) 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.
(2) Includes activity and balances associated with loan receivables held for sale.
(3) Active accounts represent credit card or installment loan accounts on which there has been a purchase, payment or outstanding balance in the current month.
(4) Includes activity and balances associated with the Gap Inc. and BP portfolios which were both sold in 2Q 2022.
(5) Reflects the reclassification of $3.5 billion and $0.5 billion to loan receivables held for sale in 3Q 2021 and 4Q 2021, respectively.
(6) In December 2021, we entered into an agreement to sell $0.5 billion of loan receivables associated with our program agreement with BP. In connection with this agreement, revenue activities for the BP portfolio are no longer managed within our Home & Auto sales platform. All metrics for the BP portfolio previously reported within our Home & Auto sales platform, are now reported within our Corp, Other information. We have recast all prior-period reported metrics for our Home & Auto sales platform and Corp, Other to conform to the current-period presentation.

8

SYNCHRONY FINANCIAL
RECONCILIATION OF NON-GAAP MEASURES AND CALCULATIONS OF REGULATORY MEASURES(1)
(unaudited, $ in millions, except per share statistics)
	Quarter Ended
	Sep 30, 2022		Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021
COMMON EQUITY AND REGULATORY CAPITAL MEASURES(2)
GAAP Total equity	$	13,012	$	13,393	$	13,418	$	13,655	$	13,936
Less: Preferred stock	(734)		(734)		(734)		(734)		(734)
Less: Goodwill	(1,105)		(1,105)		(1,105)		(1,105)		(1,105)
Less: Intangible assets, net	(1,033)		(1,118)		(1,149)		(1,168)		(1,090)
Tangible common equity	$	10,140	$	10,436	$	10,430	$	10,648	$	11,007
Add: CECL transition amount	1,719		1,719		1,719		2,292		2,274
Adjustments for certain deferred tax liabilities and certain items in accumulated comprehensive income (loss)	419		391		371		329		299
Common equity Tier 1	$	12,278	$	12,546	$	12,520	$	13,269	$	13,580
Preferred stock	734		734		734		734		734
Tier 1 capital	$	13,012	$	13,280	$	13,254	$	14,003	$	14,314
Add: Allowance for credit losses includible in risk-based capital	1,142		1,099		1,106		1,119		1,052
Total Risk-based capital	$	14,154	$	14,379	$	14,360	$	15,122	$	15,366
ASSET MEASURES(2)
Total average assets	$	98,694	$	96,073	$	95,556	$	94,707	$	91,948
Adjustments for:
Add: CECL transition amount	1,719		1,719		1,719		2,292		2,274
Less: Disallowed goodwill and other disallowed intangible assets (net of related deferred tax liabilities) and other	(1,776)		(1,878)		(1,964)		(1,999)		(1,960)
Total assets for leverage purposes	$	98,637	$	95,914	$	95,311	$	95,000	$	92,262
Risk-weighted assets	$	85,664	$	82,499	$	83,251	$	84,950	$	79,597
CECL FULLY PHASED-IN CAPITAL MEASURES
Tier 1 capital	$	13,012	$	13,280	$	13,254	$	14,003	$	14,314
Less: CECL transition adjustment	(1,719)		(1,719)		(1,719)		(2,292)		(2,274)
Tier 1 capital (CECL fully phased-in)	$	11,293	$	11,561	$	11,535	$	11,711	$	12,040
Add: Allowance for credit losses	9,102		8,808		8,651		8,688		8,616
Tier 1 capital (CECL fully phased-in) + Reserves for credit losses	$	20,395	$	20,369	$	20,186	$	20,399	$	20,656
Risk-weighted assets	$	85,664	$	82,499	$	83,251	$	84,950	$	79,597
Less: CECL transition adjustment	(870)		(870)		(870)		(1,353)		(2,065)
Risk-weighted assets (CECL fully phased-in)	$	84,794	$	81,629	$	82,381	$	83,597	$	77,532
TANGIBLE COMMON EQUITY PER SHARE
GAAP book value per share	$	26.76	$	25.95	$	25.06	$	24.53	$	24.13
Less: Goodwill	(2.41)		(2.27)		(2.18)		(2.10)		(2.02)
Less: Intangible assets, net	(2.25)		(2.29)		(2.28)		(2.22)		(1.99)
Tangible common equity per share	$	22.10	$	21.39	$	20.60	$	20.21	$	20.12
(1) Regulatory measures at September 30, 2022 are presented on an estimated basis.
(2) Capital ratios starting March 31, 2020 reflect election to delay for two years an estimate of CECL’s effect on regulatory capital in accordance with the interim final rule issued by U.S. banking agencies in March 2020. Beginning in the first quarter of 2022, the effects are now being phased-in over a three-year transitional period through 2024.

9

SYNCHRONY FINANCIAL
RECONCILIATION OF NON-GAAP MEASURES (Continued)
(unaudited, $ in millions)
	Quarter Ended
	Sep 30, 2022		Sep 30, 2021
CORE PURCHASE VOLUME
Purchase Volume	$	44,557	$	41,912
Less: Gap and BP Purchase volume	—		(3,534)
Core Purchase volume	$	44,557	$	38,378
CORE LOAN RECEIVABLES
Loan receivables	$	86,012	$	76,388
Less: Gap and BP Loan receivables	(124)		(850)
Core Loan receivables	$	85,888	$	75,538
CORE AVERAGE ACTIVE ACCOUNTS (in thousands)
Average active accounts	66,266		67,189
Less: Gap and BP Average active accounts	(110)		(5,871)
Core Average active accounts	66,156		61,318
CORE NEW ACCOUNTS (in millions)
New accounts	5.8		6.2
Less: Gap and BP New accounts	—		(0.5)
Core New accounts	5.8		5.7

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