SYF - Earnings call transcript Q4 2024

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Operator

Good morning, and welcome to the Synchrony Financial Fourth Quarter and Full Year 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.

begin. may You

Kathryn Miller

good conference and Welcome our to Thank morning, earnings call. quarterly you, everyone.

to we This Investor address the In presentation press on to financial today's addition release, the are presentation be the The release, available we website. accessed schedules call. going and that website, have of topics plan can our Relations to synchronyfinancial.com. section during our press detailed information covers a provided by

today remind we uncertainty, forward-looking our will actual our started, in differ SEC materially comments wanted the that Before cause subject and and that to list factors on could include website. to These risks you filings, are get results statements materially. which statements. We differ available results might our I to actual are

to call, financial company's we discussing the refer the in will performance. measures non-GAAP During

find measures financial You to of call. in our reconciliation can measures for today's these GAAP a materials

for the third earnings not is website. Finally, does edit and Financial only The parties. transcripts guarantee or located teleconference webcasts authorized not on Synchrony are our our of provided responsible accuracy by

to now Synchrony's the this President Chief Doubles, Brian will are Officer. Brian Wenzel, Chief Doubles. Brian and and the call I Officer; On Executive Executive over morning Vice call President Financial and turn

Brian Doubles

wildfires. everyone. has those Thanks, and expect support affected. who to all while not are on we a California And acknowledge devastation of colleagues, take have the the providers Kathryn, business, all impacted. do number ways in monitoring customers, and offering been and financial first Synchrony morning, were closely meaningful we that our to I'd a the situation to impact of those good partners like a moment affected by

of grew added fourth $XX quarter new volume by performance. ending and to purchase million X%. generated X receivables Synchrony's Moving We accounts, loan billion

in year-over-year improvement portfolios In trends. see our delinquency continue to addition, we

on during year purchase Synchrony $X.XX second and net fourth to a accounts per than the our flexible our and of $XXX as new million of of to highest partners, we more This serves our XX%. quarter of or volume. to fourth Our million $XXX of propositions strong of both earnings a X.X% we common average return volume quarter that Synchrony our level on close acquired and important almost which RSA continued solutions marked diverse a equity billion and deliver interest an maintain lasting enabled and the to XXXX XX assets testament tangible compelling value diluted of financing return appeal discipline results offer. financed purchase share, and align cost and These

our many Synchrony deeply the understands needs of stakeholders.

And so credit even deep Synchrony rapidly leveraged changing as actions environment. our our and capabilities and lending more of discerning nimble inflation our persistent data responsive in choices in customers the impacts analytics as the spending year hold and digital to expertise our advanced became took remain and progressed, scale, their and a

As return Synchrony generated X.X% billion XX.X%. common net or on per earnings result, of share, tangible equity of a diluted return and assets XXXX a $X.XX on average a full of year $X.X

sale adverse potential and at sustainable from unprecedented priorities an risk-adjusted undertaking opportunities business position high strategic and events plan several positive far-reaching key growth through across all at Synchrony And us impacts industry. yet level ranging performance in prepare lending multiphase all term. optimize complexities our executed amidst the landscape, financial an consumer for The a the of for strong long ever-evolving returns for the business the to our the for change of of of acquisition these to and both the business, the to another included a implications with nonrecurring of and X regulatory our

existing more excited management digital technology-oriented recently, the relationships XX with software we brands solutions and and X Virgin, value. as and builds Verizon ] renewed of reach. upon partnerships practice also like added and iconic and Gibson expanded industry's for additions and focus in the Each programs, Club, flexible extended well [ relationship Synchrony while customer than and renewal can products announce JCPenney. which Sam's strong including experiences our BRP more Synchrony XX-year with than and of Generac and Titan. X partners, of our which the further our services including XXXX, delivering provide grew Club also more member-centric partners service financing of year as during we that top these Sam's more During to Adit new We're diversified January, XX our like extending than

XX has partnership needs JCPenney and Synchrony's customers' changed. collaboration both as with years also nearly have evolved innovation through our over

and extension and of financing a option is their Later QR purchase now select code Synchrony or program and in approved device, our their Pay Buy Pay with introduction scan X-, the preferred payments. Later, will expansion XX- to installment immediately. long-term Our on solution financing include Customers make XX-month application own complete their an Now can store

just And Synchrony expanding Business through we we capabilities evolving to ways are markets in serve our the breadth transitioning continue the to and we of and Later. XXXX, programs offer, expanded completed acquisition deliver on merchants which this multiproduct utility in we integration excited we programs partner the In the the the is are offer. continue of Pay also value of XXXX. the and We're and of Synchrony we developing vertical focused Lending and further Ally process products a and in diversifying the

growing the equity the reimbursing in pet believe growth about We Best, Best, our the simple pending, Holdings, pet significant pet deliver Health support in Together also for solutions card. process claims patent streamlined CareCredit with through X interest industry. a financing Pets payment the connects recent seamless care innovation will and a and and excited unified a finalized the addition and rapidly to Wellness we CareCredit We in in that this by an extended independent insurance IPH. Pets parents of experience gain, industry our to Better launch directly of We're the and pet sale reach financial

we XX% purchase markets growth almost and services, nutrition And wellness-related which volume to wellness supported into CareCredit during finance XXXX. in dietitian launched and fertility, products

Synchrony In utility our expanding acquirer delivery made and credit the distribution the our acceptance private ecosystem by through partners. An label possible of their their by financial broadening enhanced of merchant of evolution of number channels. a addition, our more cards

exceeded Amazon for including example, the Whole build foundation results mobile all QR and Amazon.com, memberships. store our and strong be locations expectations The X of For code Audible. card used via at now acceptance, can have Pay upon and Amazon Foods medical

utility, out out to retail Albertsons wellness acceptance XX% in health approximately our And across value spend Card XXXX of categories. keeping of Club, roll to in open Companies, product's list Walgreens utility, XX,XXX locations, over CareCredit CareCredit in select past growing we thanks which and the this used of with addition, outside grew can and Sam's and services including broadening be proposition year, now accounts by health pay for In about strategy wellness a Walmart. continue our product of Dual its strong to was XX%, partner and traditional of products

of purchase, digitally, customer's responsibly increasingly are apps payments. wide they and on looking at to however a a services variety that's whether that designed delivers the Synchrony is digital innovative through sale make financing and occurring whenever are an or needs and wallet mobile a each to of address physical products that point device opportunity Today,

relationships. the So a deepening through are to experience across cohesive we footprint. to our and throughout to more role past website, Synchrony partner with and native apps and From been the our journey our and on expanding engaging has plays bring content Synchrony digital customer year, marketplace our life our that customers

to through efforts extensively, to as our visiting Synchrony presence, they well fact, costs. while engagement also and engaging and our enhanced cross-marketing new incremental has accounts and acquisition as strengthen our sales customers We're engage seeing on we've awareness sites for more more partner this longer lower properties, and are Synchrony's our In our capabilities digital expand with product often customers. contributed

of million insights In we to experiences. and technology financial case almost new Synchrony's doubled advanced than dynamic associated with highly Bank Bank, that our more our proprietary through spend and our Synchrony XXX financial journey Marketplace the reported to more deliver engaging trade our the connectedness ecosystem combination and accounts part Synchrony And acquired is a across our ecosystem, the website of points, of costs. drives customer our lines leverage data between and synchrony.com and customer digital number personalized platform, the trillions acquisition of scale partners. than and with can greater and throughout thanks growing no we've customers analytics of

referrals Over the X that contributed Marketplace differentiated and more and last million campaigns curated offers across XXX to year, participating partners. impressions to our million than launched we've

more XXX In million addition, customer submitted newly XX% than in almost drove applications growth within Marketplace and marketplace. hosted visits

made and in also power engagement, purchasing strategy great our for wallet Synchrony's digital stronger driving customers. XXXX, utility strides

users the wallet and XXXX grew active XXX also compared and double contributed sales supported XXXX. This digital unique wallet growth improvement Synchrony's basis in XX% to than a to more point fact, more In cards than continue Synchrony's strategy. we natural these this provide share to tailwinds our to wallet should and in in products co-brand the stickiness penetration rate, wallet dual which enhance as of mobile invest

in-app users expand Apple penetration holders can later by flexibility. payments Synchrony redeem more cards. a Online, offer standard or in and our see even an ability card Synchrony Apple monthly the includes promotional provides an of XXXX. by users further excited choice way drive that the issued the we with on the to terms Mastercard iPhone plan fixed our includes enhances on And bringing this Pay from pay or digital This checking now their to also with out recent view to further and This iPad. opportunities credit announcement and We're we when integration Pay eligible an rewards with year choose them use eligible this pay to that

to capability to those discipline and portfolio. and continues drive strengths and to Synchrony experience work Apple value all leveraging our to greater for grow deepen innovate expand leadership serve, plans we're also our with And maintaining this our Pay-enabled across core sustainably financing we partners if position. still and our Synchrony our

is incremental and hundreds small between approach providers of million partners, in sophisticated thousands lifetime to customer XX we value deeper midsized Our serve. connections and businesses driving and customers of that approximately

and portfolio our of programs products, spend of whatever life diversified flexibility they're in. moment Our in is empowering with customers categories financing

to underwriting omnichannel channels post-pandemic portfolio's be financial credit distribution increasingly our delivering in compared lenders and anywhere is stability credit the differentiated driving And most ecosystem and industry. approach expansive purchase our are to of a management can performance Our other the made. our capabilities

incredible has been an this to the team made honor companies to the best by Fortune ranked Great of work of that in among of Work fifth with All for and and Places culture U.S. people possible magazine XXXX. Synchrony, being in earned

outcomes of strong beyond, we for the to from We're our years position long-term priming is and within American Synchrony financial call driving the strategic Commerce heart role and detail. for value our performance as and look XXXX I'll discuss that, our across to operating strength. our come, a executing deepening we With the powering stakeholders for key We're for considerable many growth turn profitable So our serve. greater priorities to of shareholders. to Brian in over we're business and

Brian Wenzel

fourth business spend to categories, our Thanks, our to that Brian, everyone. strengths This morning, management adapt of sophisticated technology from good inherent credit of combination the performance to enable Synchrony's diversified balanced differentiated landscape. the approach our resilience and comes and quarter portfolio underwriting and and swiftly our platform. reflected evolving products

lasting of During our solutions as strong value seek financing flexible against product to the continue customers inflationary generate utility and out propositions quarter, the a offerings persistently environment. our broad value fourth

maintained and we year. Any receivables as XX impact billion to result, grew we X to the early continued points last XX rates compared a of generated volume million billion active credit accounts, accounts $XX approximately X% $XXX mid-XXXX million of continue to actions and the approximately basis despite XXXX. took between moderate new down As added payment purchase

platform as level seasonal ticket account we and and moderated and year-over-year the customers furniture, in of purchase between Purchase generally growth and X% discretionary as reflecting impact the Platform Synchrony's reflected spend customers of their categories trends well the holiday year electronics, spend, as spending over the remain in range the continuation like down and generally volume both prioritize course lower as and down nondiscretionary particularly the the per bigger outdoor volume receivables items. credit discussed X% cosmetic actions. selective at of behavior

Synchrony's of XX% credit platforms range to flat volume to and actions. X% rate purchase payment year-over-year, and volume Dual spend due and products cards X%, of of slower purchase the quarter the growth across co-branded and impacts the customer increased moderation. for growth accounted total primarily combined broad-based higher reflecting selected benefit utility the by Receivables offset from these for

Net reflecting revenue RSA on grew X% fees by X% increased increase as interest higher income, partially by income liabilities. interest from higher Net primarily $X.X expense. and X%, to billion and interest interest expense and partially higher higher interest-bearing billion, resulting to interest $X.X an offset and offset and from fees grew interest loans, in fees higher other

yield as receivables and the X rate, our offset by well by pricing grew late payment loan PPPCs basis primarily lower a Our and partially points, higher our product, impact actions, driven or of changes lower reversals policy pricing as incidents. including

Total were of interest-bearing year. loan and the the the offset an cost includes the Pets Best which X.XX% versus PPPC impact was our performance, increased or PPPC. the of disposition. increased increase our RSA fees, liabilities by of $XX of impact points impact million program to average million basis million, receivables reflecting last of Other X partially prior related income $XXX X.XX%, related $XXX fourth of primarily in primarily our which versus year, quarter

$X.X Provision $XXX losses quarter by notable expenses in to prior of lower outlined XX.X% to net billion, decreased higher XXX quarter, our a primarily the growth. of driven $XXX by reflecting a of technology for the restructuring year reserve ratio in revenue reflecting primarily of Synchrony's by decreases presentation, earnings as credit basis and Lending cost the and the improvement partially approximately fourth operational combination compared an versus and $X.X Other on The year. million Ally acquisition costs points charge-offs. X% decreased expenses costs build other related in offset million release the to prior billion, year, reserve last XX investments. current the were and Slide discipline offset year, was partially efficiency for the losses These to fourth

generated tangible common book share a of Taken and tangible million equity value Synchrony a of $XXX per XX% delivered share. of XX% X.X%, $X.XX on earnings per on or average in assets together, net return return diluted and increase

on I'll X.XX% year points points basis quarter X a X our Next, end, cover above fourth credit average the our X.XX%, was to XX-plus quarter historical our trends XXXX. of XX. of and prior At delinquency rate Slide key the from XXXX decline basis from in

of to Our fourth XX XX-plus XX from rate delinquency was increase and our in from the points quarter X.XX%, basis basis of average points year prior an above XXXX XXXX. the X.XX% historical

quarter, points XXXX rate in in net XXXX. charge-off XX increase X.XX% year historical above basis points X.XX% fourth an from and basis Our the was to fourth the of our from the XX prior average of quarter

loan Our from allowance of XX for receivables credit in a points decreased was XX.XX%, losses third quarter. basis as which the XX.XX% approximately percent the

return Slide XX-plus rate mid-XXXX to improving the of both delinquency As confidence are growth These early charge-off credit taken year-over-year from to continued our on the rates we've and our long-term us shown XX-plus ability target. XXXX actions net give through delinquency formation as to in trends decelerate. in our XX,

provide our business. strong to and continue Slide liquidity foundation a XX. capital funding, Turning to Synchrony's for

total $XXX from each assets, and quarter, representing and broker X% decrease During $XXX XX.X% our were basis essentially versus unsecured deposits funding, respectively. deposits last a credit liquid year billion, undrawn Total of facilities last deposits point end, million. our our direct approximately secured total flat and of $XX.X At debt, of represented year. reduced with XX funding and fourth assets Synchrony represented by million grew XX% quarter total by the

Focusing ratios. our capital

regulatory reflect elected in a in the of the to CECL CECL of approximately the year's issued we capital XXXX, statement which sheet. ratio transition to higher take our XX balance fully basis adjustment make agencies. the income joint points The basis As final federal points XXX XX.X%, a has already transition rules, by January reminder, will with rules a CECL. metrics will transition we of Synchrony quarter last CECL of been the the ended and fourth Under phased-in XX.X%. banking recognized impact effects benefit of than CETX our

ratio above capital X XXX last Our basis Tier was year. points XX.X%,

total points Our to basis XX.X%. ratio XXX increased capital

year-end, returned the $X.X June to increased $XX million In remaining on in repurchases a restrictions $XXX returned X business $XXX repurchase compared dividends, consisting At had XXXX. our ending plan. XX.X% during our stock totaling $XXX share our fully during reserves plus the ratio XX, capital million full regulatory market billion of capital million XXXX. shareholders authorization and and by capital year. phased-in million of to last to the positioned to share subject Synchrony conditions, remains capital guided we shareholders as in year period well to Tier in performance, for quarter, Synchrony our fourth XX.X% to basis common return

Slide a XX%. X.X%, on year base a growth include to a GDP employment outlook of environment, X.XX% full rate macroeconomic XXXX approximately year-end for and deposit Turning is rate year full our assumptions funds Fed year-end XX, our of baseline stable X.X%, of

process regard surrounding the include rule [indiscernible] outlook this outlook addition, [indiscernible] into given impact with no go no PPPCs. uncertainty of longer but In be rule does the potential the and landscape litigation the the rule, change, late to to assumes the fee from would effect, our impact our applicable. the were If political

Starting of and growth reflect with behavior. purchase we account credit and to ending to loan selective new receivables, customer the volume actions impacts spend our expect continue

have a XXXX our with also mix behaviors. flat XXXX as stabilized past to the payment generally expect rate payment levels result actions, customer We remain of in of which credit

expect As year receivables single-digit a low full growth loan in result, for the XXXX. ending we

trends. billion to $XX.X end net $XX.X full expect all We billion of between year seasonal be revenue for and the

and rate the to variable charge seasonality lower investment We other delinquency impact flow-through expect lower-yielding fee portfolio improves, our income on prime and rates as late performance credit lower due finance associated with both our as of the reversals benchmark by the of income PPPC's offset receivables, partially of the lower build, [indiscernible] interest year-over-year growth performance. and rate our in average

Lower competitive in be benchmark beta lower to our cuts by should trends as maturities additional to will CD rates rate deposit reprice, that also response occur. average this costs contribute may funding influenced although any

for our maintain In generally XX% growth. prefund future deposit addition, few desire expect and relationships approximately next quarters, we given liquidity prioritize of higher of levels to the our to customer

of increase. and between should X.XX% PPPC's our net as by RSA declined X.XX% program as performance a and charge-offs loan improving Finally, be receivables of the impact percentage driven average

benefit approach and X.X%, efficiency XX.X% the management. between We Synchrony expect year actions rate to expect credit on full business. underwriting and as to and to driving our differentiated credit And portfolio charge-off we between our remains the net reflecting our in for primarily prior our X.X% be be operating leverage ratio of focused and our XX.X%

Q&A, Before X like from with today's the I turn I'd key to over leave to call you takeaways discussion.

to well growth. First, our Synchrony is positioned reaccelerate

we've and to made Our evolving market designed were we've through sustainable investments prioritize taken growth conditions. profitable credit actions

approximately Our XXXX average performance an exiting demonstrates ending return while X%, since return the common of XX%. pandemic equity discipline our receivables of delivering loan of approximately X% and with tangible average growth on average assets approximately in on

our industry in confidence trends of delinquency and to the trends give to enabled credit our us track portfolio's formation outperformance both has relative our growth. reaccelerate ability this the profitable record recent our outlook Second, and credit

in our for support environment, stability credit watching performance to more spend of and continued improvement confident continued consumer macro our are We behavior reversal gradual the restrictions. the delinquency in

to Synchrony's shareholders supporting years greater ahead. capital in our It a also returns third, while enable position And the our clear robust will capital growth is strength.

XXXX beyond high-level towards Q&A. drive With we and summary, I'll Kathryn back In us execution as turn to has Synchrony's our call to positioned progress financial well targets. for long-term the that, open in the XXXX

Kathryn Miller

remarks. prepared concludes That our

now the will begin Q&A We session.

primary we like possible, as please to question. to limit and you many ask can the participants yourself of X that follow-up accommodate as I'd X So to

Operator, Q&A the Relations will you additional If available the after the Investor team questions, be session. please have start call.

Operator

[Operator will question our Ryan Goldman Nash Instructions] from with We take first Sachs.

Ryan Nash

pieces come some fees the on interest from we So the income? of in the impact And do Can I benefit dig off down? X.XX Fed maybe moving of talked you should balance both Brian, funds, revenue net as rates in sheet about I to on guide. start First, the think net growth maybe NII. targeting in on just [ about you're guess, how we terms know rates? and ]

how for incorporated how is through the on benefit of I second, full your rate then the is run follow-up. already of this year? then And PPCs the you're into coming have guide, And much impact anticipating a the

Brian Wenzel

Yes. Great.

and a bit try unpack little that, Let of Ryan. me

you're about revenue. So and running little going guidance, a related think net a get bridge net PPPC's then increase to the through think when net I you the revenue When bit about guide, you I'll you to think significant NII. to revenue

but through You'll the fairly a net or a and the also from that but is a has coming through has not lower charge coming RSAs, your comes rate drop from are there a One are net that which offsets there. late charge-offs charge-off coming X of effect through fairly you get revenue have flowing here, only large effect in the rate growth there lift XXXX, that in revolve are as -- And also back. lower PPPC significant decline. well fee as

the So pieces, the because that those more general out impact, dynamic, revolve coming year. growth all RSA kind beginning through. On through. drop of fee negative but year. of [indiscernible] when rate rate we late in those a full of strips timing rate, funding, slightly see pronounced of this the you are this more a the will had same it's kind obviously, net starting flow part the for to cut moving It's NII the the already

with more a the you when CD you, rate which depending think maturities prime quickly restack. timing then again, it's portfolio, funding honest piece, when fairly be the about the resets decline, to upon and So investment

financially with of pronounced expectations. more are again, the I'll generally question NII growth get in performing PPPC, So our and ahead line the

of bit maybe the people lighter retention, e-mail. little there's bit and getting fees the we're We statement stronger have to paper on stronger yield due side a adopting on interest little mix, said a

NII. of revenue kind So I framework how net that's about and think the both for

Ryan Nash

maybe And a on as follow-up it. capital. Got

And toggle for back target, And sitting little you depressed are the about low the bps I Can in bought just just between billion quarter. So especially -- was of you plan $XXX a seeing in maybe seasonally more opportunities think you particularly talk to a bit capital over maybe the stock. you're return, it why above XXX quarter. deploy last the about of bit capital little know your to Or in holding deploying growth. thought understand the you terms means what mentioned quarters. over next few on remarks, of in the the you I anticipating return loan it near-term growth? a of reacceleration Just twice Brian, Are buyback lower inorganically? process back trying for and it the

Brian Wenzel

Yes. prior presidential the effect. be the our Thanks for going the election a the to through of after be through market potentially market that was and on came was want are lower of for the volatile read to an a a what know did the math just view the than question, for of some Ryan. flow-through on in administration and kind The people quarter more what the of cadence make I given kind into more being quarters I whichever we try cadence lot to to clear. going and quarter.

So we buyback kind that of be leaning going predetermined to a from that, perspective. that in a heavily were quarter we wasn't

It and tests in not we is running to for the repurchases, the or read authorization, build clear, with stress for bit bring us of capital to lost quarter, right does was in our disjointed to to understand for that but lower completing But capital due the the opportunity inorganically. committed their our down a our plan -- remaining be to we more fourth would markets that. And of our and closer the capital growth we million again, remain [indiscernible] now, XXXX that provide the want disruptive didn't complete through being additional capital view maybe I I that to the us. kind our little not process of inorganic. intention have current It do a $XXX more target. waiting strength is we're back just we on things

Operator

take Sanjay with we And our next question Sakhrani KBW. will from

Sanjay Sakhrani

should impact full guess it that have end more. of I year, And run in just Wenzel, Is into a the PPPC mitigation mitigation trying sort of numbers? And we a how late of takes sort think how to that sort doesn't fair bit normalize fee you in there? anticipated that you the that would little we higher assume rate to drill long-term of if think you'd to impacts happen, Brian still when like have there? and about and when I'm of just putting might ROI regulation ROA? what it maybe I that anticipate get about your the by thought this getting

Brian Wenzel

the Yes. question, Thanks for Sanjay.

I about the couple a components, going As how at I charges. XXXX still the if out look exit be PPPC, of different on you're and think finance there you not of to fully

we year you you're roughly out. If said you're recall, XX% years about -- X X half out,

be closer run to number going there's So get on and 'XX into 'XX. to That's as rate incremental go one. the interest line you exit at

say to be grow a the accounts relative a then income headwind on where get have versus little to line eBill upon will the all level, but if -- that the grows then that paper steadier I'd active accounts average bit statement -- potentially, and we'll there going not our depending should other statements then rate -- state mix expense and be Paper you're down more and the people benefit choose of could line. a how

on And went little a build that that fees bit in the later in last that's say effect XXXX thing because should I'd the is promotional something throughout XXXX.

over up a pick picks bit in a and buying volume perspective, on little that up, amortize right? been time. promotional our below Just it's should amounts, historical As

fees. from is out paper the you charges both income, on 'XX, of statement as to still interest think and on interest and interest the there the a line grow I So little exit room fees interest from bit promo

Sanjay Sakhrani

any then And Okay. as there? as far ROA thoughts like

Brian Wenzel

need guiding you at ship Ally obviously drive theory, to ROA. important the incrementally lower really that an you have strip But . year, the In We're where BPPC coming a the from we're place should offset construct ROA if of late would without [indiscernible]. higher. about generally to something the you theory, the it's to to fees not this outlook. In out not -- look

Sanjay Sakhrani

Okay.

loan the there. RFPs Just if you talk could for X of you. looking conservative mean, can Maybe there's There's environment. follow-up I guys And just Are about weak. anything just being can I you about how of that? Brian a for . remains those. talk growth couple know that you a the there? lot purchase drive still out Maybe volume help then Doubles. deal it's remains The around chatter weak.

Brian Doubles

Yes, we I operating say, environment just your around like question, start right with would now. second growth. is which generally, the I'll

is now. take consumer did in think, right the we some I environment look, credit good like pretty the actions. shape. We

You're as designed. seeing those work exactly

XX-plus So you corner. good. year turn the for really is The setup saw next

So the we about feel environment. great

the I'll there's do. competitive side, as good lot on tell discipline of market. pretty opportunities looking always in we We're at the a new still you

a We pretty at And discipline. pipeline. still point, good this robust have there's

some seeing you're is effects and in discipline economy, out opportunities, of new think you coming of the periods election. I of that. around think to good pricing uncertain bit of in the we're was year inflation, a -- little last that that, pretty see when terms And I the tend like

to between things are partner. Those for we on absolutely know, return. really So bidder. we're for business. risk-adjusted us And good a have win as programs you Like us. strong those disciplined new continue where we a are the critical. nonnegotiables alignment always focused and We're We look

of good really a this good with So new And feel actually renewals and business. Sam's did I about you about feel big saw JCPenney. past with competing for I environment. how feel couple quarter that we're -- I we that again, the

Brian Wenzel

Yes.

was into volume back action side. purchase range. And point, quarter, Brian I are that's line the getting back us the And of helping know get us faster design design. the is by at set peers. it's our also new X driven. the when really trying of trajectory kind portion on credit we're just a And were on point focused to people if we'll some for us that, get but I credit growth So credit a [indiscernible] what the you in that up than significant But our important. into add get of I accounts really by the really to Sanjay, look focus the could at That in credit was fourth to where on said, purchase know XXXX clarity position

Operator

Bhatia And take of from next our Mihir we will with America. Bank question

Mihir Bhatia

is to maybe there how some in Does wanted back talk XXXX? terms about of do embedded portfolio the even the you heading of some just out net actually the the I XXXX? to expect your and much into that What -- in of assumptions around like resized revenue components question XXXX? of revenue heading imply upside on just just go in more net of that

Brian Wenzel

where rate stand book should months, in going as really period how the here the Yes. first first months providing changed. next other I'd the of an the going that that Again, is than Obviously, bit about incremental slightly we to in half, say also haven't given we we in here of influence in into reprice of the XXXX. a happened the schedule We're an prime XX a ahead now. and latter we're XX have talked much little part changes color we're of

that guidance much to the to APRs. change of to no on the there's is how we book again, had with So be new the going regard

Mihir Bhatia

let's to then mentioned it. just turn so maybe credit, that. like Got And you

volumes tightening meaningful and still your was is does curious actions we you But and see would underwriting. purchase Your delinquencies. adjust pulling that some pressured. but are on driven I of understand the outlook improvement, back your in -- by it own about how I

a there. of questions guess I couple So

credit around in posture seeing minimum in some increase How your people commentary with do people are done where underwriting Some currently? standpoint? seeing paying How you many you at others for do limits. are are at some are from now? you consumer? about environment an feel balances, underwriting the the Just type from And you an have you feel What are -- about tightening you full book? the What consumer? their -- how full mentioned

Brian Wenzel

Yes.

me unpack try one Let here. and that

are focus could -- The to first about want to think others. it our quarter the credit the We now other a quarter, third on whether reached what a sequentially in XX where where you we the trend positive, doing normalization that a later the in or you of lot thing, than I pluses say, people turned it. were or fact people fourth peak if year-over-year

the pleased and taken, we've more didn't with actions largely we compressed, that performing. and to go due was credit high they're with ours much we're how So

back say, The the quarter really, [indiscernible] in XXXX. that we I'd broad-based of took actions second

at that as those the we the So the look refinements take and standard at actions to that of idiosyncratic-type products. return channels we look partners, continue risk we are channels

enter I 'XX a to on you think months we we've and when outperformed credit basis. into XXXX, As trajectory look at the now X seasonality 'XX for

gives with upon again be guide us X.XX% we those ] some actions, [ credit think of dependent to the range, to that optimistic denominator. of are to X.X% and going feel I more a down that's the which going performance we where

go the overall a about consumer start hood thinking not the you changed. underneath really line you When and utilization for has second,

don't line. we consumers see So [indiscernible]

our not all our look behavioral when an see we that portfolio. seeing in movements, we patterns, issue that's credit When we [indiscernible] see across are payment generally at portfolio So we grades. movements

centered low more coming but excess a had different. places where materially little means they're anything not back which upper We they liquidity, in around some see prime, probably prime it's from see So the nonprime. we the bit category of it don't than kind

payment If people credit XXXX making the all at payment to our who you right, XXXX, across up significantly relative is look are grades. from composition, minimum

into the in put little look is [ as so probably right, they're and up high the payments every a [indiscernible]. XXX financing. the not And of that promotional ] Xs. different. over lending XXX materially at installment those prime, more were points plus, other [indiscernible] nonprime we It's exact basis All go up structural, you Part

So that's kind of structural.

the in cracks see don't consumer. we So

their about really much and that pressure out the was a too Brian loss of to we ability any continue payment the talked across for of As credit lot behavior industry to believe credit. that utilization the handle certain being line put cohorts, patterns, patterns,

some And step do see place. are through credit are on I of lift There don't take want we in restrictions that at that think not we to as we that So troubling they needed sit to wouldn't be right to fill back this the a of do you there actions there's say, the some reason we year, assessment where half scenario year. or the whether what an things back get potentially to half and I could us. in the everything, what place. do the for book of point us to the back think we'll first a a largely the could be I reverse in in but of order scenario have say

credit I about of that's So the book how kind of performance of and here. think today some the

Operator

take And Terry Ma next from Barclays. we with will our question

Terry Ma

any how year? X year-over-year. points additional we your you could as down for much the year-over-year credit, rate delinquency improvement the room there Maybe Do progress have basis to through of for follow-up a a as sense was on be basis rest

Brian Wenzel

Terry. you, Thank Yes.

standpoint, collections to we late-stage And a accelerated the continue flows plus on forecast externally. we don't where some What and is obviously informs in to of in for quarter good have color rate in you we the we've do but We've the from see we give XX really, collections. favorability. that relative plus, sit maybe a back charge-off. little XX performance, again, seen rate, go fourth our reserving entry taken more right, not charge-off bit see X credit, which I trends So some That, actions improved. our only pre

net level gives high into at about as So underwriting our I the we a charge-off confidence down really target us and you rate as back getting look think that, that zone. think year-over-year

think lift go particularly first see I in and the you obviously, short-term about the nature there's on if think you that there. here, seasonal from generally a quarter

not basis a XX lift. much seasonal points. will been see Traditionally, it's as of around We

to in experience that, what those of one; I we X the of One about particularly just some first We going is XXXX, think number of the I are of later timing believe, that timing mainly and while will with through. delinquency certain be you across that two, quarter things. stages, about, talked XXXX, play actions improvement recoveries recovery that have, for on performance late-stage not the par as

So better or little first half quarter, first a seasonally in bit me. the excuse

good we on based of delinquency the feel So formation flow.

Terry Ma

Got allowance And then helpful. maybe follow-up it. as on ratio. a the That's

together, we to of of the quarter had the up that for this guided mean kind all that ended than put of you allowance little the think progress bit through rest If earlier kind I you this higher in what ratio what year? does year. a as

the maybe So think the allowance should realized and the how the color any ratio? on then we guide delta between versus about

Brian Wenzel

that Yes. question. Thanks for

basis. end in So let little there's really think into that denominator try fairly a kind that exit in of I our the bit being in were -- than factors people And to ending me higher being with X maybe Number the a XXXX. higher clearly some it'd of point address gone line expected point slightly have be point influence had XXXX. rate to generally, one, on we said

part that's So of it.

model of probably actions say, we The enter think second what conservatism, how a it about little as inside bit would is XXXX. of the piece of we quantitative the credit I part the

net model, or we're I that think if you the down reserve, closer take back while providing to but the if coming think of there, get rate you a charge-off which back, or of be components able a comes believe on step should guidance believe continue is not benefit the about off that right? of inside the you net charge-off rate That that. of part to to guide, the long-term model, the quantitative the part

get on The that think overlays rate. and it scenario of out of or little the you and but you to subject of and year, as that pieces bit I bias a whether under a have second there charge-off to environment, of But will or to downward qualitative piece the inflation be are improves macroeconomic a are the those continues clarity, greater the be interest seasonality downward into you XXXX think today move how environment framework. a should about exit on bias of if which type you and trending Again, not throughout it rates reserve be funding. the XXXX be would have and macroeconomic that Inherently, is is there on how clarity watch. and flows we're ebbs your think rates declining right, you to are going

Operator

Cowen. And will Moshe Orenbuch from take TD our we question next with

Moshe Orenbuch

Brian Doubles.

programs? renewals? And sort -- large renewals the we mentioned You part a of the to X for talk of the you just how Later. that renewal little new about of the Synchrony economics talk other the JCPenney think any bit addition about Could those those the was of about aspects should Pay other

Brian Doubles

Moshe. Yes. Sure,

So this at and decades both renewed look, have thrilled point. JCPenney We've to been with first, Club. I say, we're now would partners for Sam's

extremely happy renewed. JCPenney. we're to launch Later We're them Pay So have excited to with

ecosystem out and testament it's partners, built, renewal business. JCPenney, for with compete the also new think starting really with multi-product go -- Lowe's, resonating we've our with compete side, but on real it's as both the to that I new we frankly, a -- both

was that than basically to were generate probably where buy-now-pay-later anything different it's looking or they doing you ago I they X for could drive sales. and fintechs, were partners And think it leveraging solutions, had X years

a in they've and of that customers step with co-brand product "Hey, can starter to way at then a products meet said, the compelling. partner. partners revolving a that, because the it's time, us. absolutely return new customer, And back benefits you and the exactly product it does. they taken card. threshold, lifetime over like I product, of and we want us you it It's a really look bring some said, Now graduate but of And for associated at when don't kind It's the the our in great be that a for to economic value model them great look starter buy-now-pay-later when

that. These that that perfectly both think long-term interest critical successful they we a a program. I terms into the cases, agreements. get I make partner you sure just economics absolutely we're it's don't is alignment both. the of both want of renewals X I the both great because And the we that We've agreements. happy got between extremely on and terms talk us with and lot In on in aligned. economics, have And tell would to the about are are. to

Moshe Orenbuch

half little year. second degree some And bit perhaps a of the just about reversal for of the you potential it. maybe talked by a follow-up, the of some the of Got as tightenings

bit partners, about little or not granularly that on? going other that, forward we kind likely looking a types first see more be that types certain signs that talk names to of whether should there any Just partners of, you'd see but maybe of are of that's

Brian Wenzel

Yes.

Moshe. question, great So

upgrades cards right, that start going have you're to down see more more areas, one. will of of We acceleration an label think see dual what think little you private go to a dual private right? about card, the from be bit product may into and as today, through label couple where we that's so do would into would a card selling potentially I we is in dual potentially products, we the

probably area will and we more balance I potentially is see that happen credit have think we where platforms and type [indiscernible] decreased increase line in some of line credit you'll a that larger probably and credit increases see generally been decreases, you'll line activity bit on restrictive little have. more activity the

the So purchase flow bit centered I I growth Again, a areas, on through balance to is begins you'll into accounts line large-type start then some of on that really to little think see activity. platforms. initially, approval some new in think, what expansion improvement the our rate

we'll you the be potentially I of some the another and wellness, make they're help gets we're Those confidence about quite be we think it's confidence, some because the that's they is auto, but but more enough what board, cosmetic consumer consumer health of confidence closely, and discretionary seeing we through enough as has to you think want has some in mattresses nice in to when purchases watch when component confidence where think deferrals. big the about where consumer noncredit across [indiscernible] them. going and home create when here to tailwinds the should furniture step oriented, there

the some or under So a begin actions little it's scenario. unwind I potential bit do that on to take would of we that broader think

Operator

next take Morgan will Stanley. Adelson Jeff with from we And question our

Jeffrey Adelson

around feedback really the here? back these some slowing I a growth as Just renew feeding growth the you've few understand seen purchase partnerships can are dynamic that slower a a given and competitive bit credit is you into in the win but years that actions some share broader retail from And new you've lean you maybe underwriting, talking growth partners point for the Synchrony to with to little look how having hearing you're volumes controls of of and from the and taken, account maybe key now of your that? here? you of conversations desire more partners maybe narrative and of

Brian Doubles

Yes. partners. is good have we which Jeff, of comes back to with the really I I alignment it earlier, what said programs, our think all

So at some on RSA all these both did started and what of to when credit completely those 'XX, the industry we proactively and jointly. did do with was data, We show modifications. of little at that but we consumers, a the just the And what program. of very of massive we extended tightening related our saw transparently piece, on We in to the results. to the we 'XX look exactly actions and 'XX, partners, everything the the them performance amount bit like into making we to it's the program, the we make also on look decisions going side, growth that do

to our and a very I that better charge-offs We control our for now. the net because And little the Brian mean, credit. through PPPCs There's as the partners. will are bit work. no confusion said, That's XXXX. about exactly up of supposed that, come profile we but they're aligned how do seeing And it interests the transparently RSA. with you're RSA

both so and credit are And the the RSA working designed. as actions

it but way We target, that. in the customers. partners to drive help long-term and want credit both a more very want a to we I prudent we it's think where to And want as And together. We so that in clear both long good be a win confused, contract want we doing improve we're to our got managing to partnership like you've sales, we're don't this as where do grow.

Brian Wenzel

taking did record put the just I coming growth thing we year The a Yes. before. as off asset up year just purchase the only a had Jeff. we I'd add back here, little step the purchase And before. ever mean, in highest company, to second volume volume significant that, on a

credit your I'd credit I some is accelerate which think the because one at say, and by were actions. and to of look This steep historical that. an why our and design start the probably coming actions back That's you at out, trend. do we increase. long-term That through fastest in, to the push of -- is this have long-term So of desire to taking was pace do if didn't that slowest we a averages, losses and

a that this for our perspective, of for the again, sight partners So is our I want year fact to a purchase line lose and significant don't from company.

Jeffrey Adelson

Okay. question. maybe you sends PPPC from Sanjay's regulation put maybe on a rule, you on of come just CFPB If late back Great. fee to the the say retail follow-up, have let's desire as the out the And circle pull talked the doesn't of can any about about there? my and partners through? just back some your just And talk plans

Brian Doubles

Yes. Look, I'll this. on start

I on developments the think will some positive been injunction front, place. stay there's litigation the clearly, in

[indiscernible] some With merits the just the case certainty positive that nothing all industry. don't said, think the comments We this about I have of final. is for at point.

progresses. level litigation need We certainty. making to the some this at point. on pricing got planning not changes we're actions to So how any of see the We

And at we'll the financial number I I fee partners. We'll impact that RSA. we transparently. behavioral have like including We point, terms and are their seen through look up We'll do of And our of our may look very the at proposal what do would the look said we earlier, We'll until out. the in this we'll We to think exactly a programs. go late the at competition. it partners did to pricing came other impact industry. changes we'll out. any where that go merchants factors, at how look when different talk providers We'll

we've So credit just out. We'll make again, when collaborative. like proposal together came fee very late on it done be will decision the first and the

Operator

is next the Hecht And John Jefferies. with

John Hecht

I I you kind within long-term leads is aspect know the guess, of the be I early is itself it one, is 'XX credit, aspects vintage that just but to any Brian some there that that early, goals? might of might guess, vintage of 'XX believe First -- of another, the Wenzel, from performing reads

Brian Wenzel

Yes.

all, thanks the for question, John. First of

on [indiscernible] 'XX 'XX we And estimation. experience worse talked but gives they Those early As look at of relative slightly and both than or when I'd that's our to us pause performing the early, XXXX the to they as significant moved XXXX, about XXXX compare industry's I the we back performance develop. some really industry, and are in say, develop. them those nothing the look and better as to XXXX, in vintages very at continue particularly we vintages

target we as why beat full XX we're by we're very those So embedded range actions we and just in million hopefully, million I for [indiscernible], optimistic our in, with think year. X have happy that the back, feel look at guide of another it, long-term but the reason of credit $XXX as next inside vintages to vintages $XXX

John Hecht

Brian at wake then just guess, commerce the, And Doubles. of of COVID? you the about can in all over in-store of And kind Okay. digital has commerce. Maybe versus talk that trajectory changed mix the I

Brian Doubles

increase, to the growth most type terms at Yes. But shopping. is John, where seeing how not surprisingly, of of in partners we're also moment. it the continues the the consumer both

becoming We in saw. where big are Apple of more and the that Pay, areas is announcement more the wallets of digital prevalent. One which we're had you investing

continue So that's where we invest. an to area

well think we there. compete I very

the that's apps X our I'm we platforms. have X for there We investing or mobile technology outage the their where into partners' embed is I and stating that's heavily. think we've really been future sophisticated that And and years going, very platforms obviously --

competitive we sophisticated that more think as And about I than the so advantage, a we feel a platform many in industry. have good

Operator

to And we ISI. Evercore Pancari John with move next will

John Pancari

level running I what you're outlook? this appropriate the levels you a And the you prefund this decision? as would is what's growth. liquidity long-term could front, mean, And color around On maybe out? view? you partly longer-term give liquidity you to around change bit say at at I mentioned higher the little could of liquidity look know XX%, What more

Brian Wenzel

Yes. Thanks for the question.

over higher more EPS really for bring a positive dollars in attract of dollars there and at basis, If will in. consumers think it at on can that down still Fed in As that positive certainly makes the on I a continue have think collect net trade. I short EPS trade reaccelerate we was rate do a and we comes that, high-yield Yes, EPS did customers. when get it's Today, we term want savings only a growth the in that's positive liquidity place economic cash, an shrink digital trade to for track interest hurts us new there's on to banking what right, there's sense. with deposit the me. to want look margin, a we to growth the market, [indiscernible] And but to $X.XX even deposit

rate What a acquire back be in I year want year to back half into and or when do have is the to next short term and to higher try in of the sensitive grow. pull cost then we the

the that's So really strategy around.

space. positioned to as relative who really we're feel in that define our we peers well think banking we the I digital

about it, upon If it's you rate, the that in long-term think XX% XX% the, generally in. I'll to depending call that which quarter you're

funding believe short the going than not because that some alter at just to here, our but lower from the deposit strategy to we out reaccelerate will it in term, So call point. we're we wanted growth slightly

John Pancari

right. folks administration, on you follow-up action the All mean, rule. the or late in D.C. quick just are Pitman. rule of I sorted you courts actually the I still actually potential from as it. positive changes fee post could Got in to out what But the the terms comments my acknowledge then a CFPB the from killed heard election allowed at one, in line? is the there's the your And Judge coming hearing back be

Brian Wenzel

number on to but a I a about a tell going I just been fairly mean, of hard feels it will still our could has of time ruling, the to it lot good started, ups from there uncertainty. the of when litigation with legal different Yes. It's really speculate downs. here are play I Judge scenarios. team. out lot industry and spent back there's We lot you, Pitman's a how think And that. of

I open the think the of window appeal is February. week until still first

very partners, beyond we're don't but speculating. don't into want to to communicating want close speculate get that. staying We're with to I Obviously, it. our So I

Operator

to next Research. move will Carcache Bill with we Wolfe And

Bill Carcache

your discuss for drive XX% to you profile return potential can normalized PPPC higher? the First, of sustainably

Brian Wenzel

changed we our outlook. long-term haven't Yes,

of what changed . I but think the at doesn't in, we whether those potentially and in, ultimate the that late haven't it Bill. yet, effect degree, back rule revisit to point, fee some it PPPC the go once settles goes targets come in, them are, we'll

Bill Carcache

Understood. Maybe following up on your efficiency guidance.

Sorry this, drive if the around the can of versus efficiency range? the end higher color that lower but missed I some ratio factors you the give towards would us

Brian Wenzel

into back operating existing extent goes just One your you to population grow existing leverage the Yes. that. manage well the on I account and how balances grow I get can

and we and relative when through periods. right to employees the go have manage I how add we seasonal discipline we FTEs, some a think of lot of incremental as how nonexempt we

comes go how to credit use. saw that is our business, back down very drive again if more we to the net there's and back a in revenue number when the So we efficient leverage the commitment pandemic. a levers decline into into company that XXXX. quickly that's we We're through as efficient, the card being operate operating most different we of company the And not one of it

Operator

move will to Autonomous Research. Rob next we Wildhack And with

Unknown Analyst

growth. loan for Question the on outlook

how that up wanted in talked where a to scenario get think second the your I about could you through a progress thoughts bit year you've because half. the might past, Just the in open on

should And included now? are what remains some that track? watch see the the base that net simple if as the of to we is still on So Is charge-offs as and then case normalizing? just in outlook waypoints it

Brian Wenzel

Yes.

second As saw the really loan the in year-over-year. somewhat deceleration the half credit themselves saw the a quarter, our We year, we mainly of would through comp year, that advance the to first that discerning were in growth deceleration as the from were as in And of continued the what look you clear you credit think got be first consumers quarter. you about you're Obviously, comparing well step from obviously, difficult against most customers. fairly the actions. the back at then, as the you

is think you And So see of as comes loan quarters. you through kind your through the when you I to step the probably second accelerated one challenging should think growth. then it more quarter about first if that, fourth it

as that to of couple in around A the or we scenario look that how bit the would see can feel those it and some the and what and about that's be and deliver credit originating trajectory effects actions. to take that but a talked something range guidance, on comfortable back see that rate inside getting to those the quarter, of that charge-off we little really first base not regard we a the then that's plan, we're be would we is you risk focal going part whether later times into the to and begin adjusted is the to in lift which would good next lifting at the we year, that charge-offs the develop With precursor have latter potentially it's the about point restrictions, begin really or [indiscernible] year we part this you'll some talked for of company restrictions of margin, then of the year. the not

Unknown Analyst

for clarification then And XX% year. beta quick in this a on deposits betas.

through this an something time the an you and XX% on entire similar down for way way on think or up last expectation the year, I cycle. were talking cutting XX% about the beta

this XX-XX of the you up? how year experienced way context you on that the think in So the about XX% the

Brian Wenzel

Yes.

definitionally, issuers the look banks So up and of about cycle. way to it start the think of read-up at the slightly the at cycle betas We look we or differently. think I start downward the

is So when and around when savings I CDs, both look that, XX% high-yield for [indiscernible]. that at beta

think, look the when digital that's get I And rate with the and you're the XX% really more that that guidepost. type beta going back at to same first of So little of is a reflective, rate of lag decrease. banks going to you forward, is of that ultimately, view to going timing with hike you're happens downer -- our really bit

half back have see As our towards the of decrease we year. you page, more that's X in the rate from can only

don't during So see deposit beta as the current given much that you lag, year.

Operator

will Crowley we W. Baird. to Vernon next And Robert with move

Unknown Analyst

mentioned card, my and cards has meaningful little you expecting bit answered, to a you CareCredit wondering new think guys I dual drive and if strategy color most car provide I'm your already been a could guys what from? more have the just on the of channels growth. stuff about you're here dual -- just but driving growth

Brian Doubles

that. take I'll Yes,

our look, huge We've of So strategic in there, business front seen good really I is think wellness one growth opportunities priorities. us. the biggest health and of

of that was offering in looked product the dual given at, card. loyalty One a just we the things strong the customer CareCredit

last wellness over one like seen their years the spend. So health that XX consumers is compartmentalize to and we've thing

with CareCredit hey, use spend. so And We've CareCredit other of our to the product, be pharmacies, for wellness was, at collaborated idea card. able you partners the health if love some to the and it accept it use

it's the exciting And product. continue an so love We'll for growth to invest We there. trajectory us.

Operator

do last we question. And time one have for

Our UBS. last question Erika comes from Najarian with

L. Erika Penala

Just and one pulling up back just last to growth. question

unpacking your I investors really messages think I the having we around the time a wanted were really primary was us trajectory. gave you of on make the conversation to at sure presented you December that And today. I all was just the growth conference that with in

is of actions slowdown from was in very proactive that credit your growth were on. one So you clear, -- a from lot the

clear. think So pretty I that's

in that good not confident. is is consumer shape, You've the also consumer but the mentioned

what is so and been earnings gotten across how wanted strong data has of like cohort has to about in strong. look spending pretty season this kind because we of forward the we've been we're thinking pretty terms the So cohorts unpack really your different far

be PPPC if the the right? I way, don't a it's going to if disincentivizing be to really grow. it in of it's in late Like question does disincentivizing mean, APR third actually And purchase on the going is, get that we to other if ask fees, might XX% I'm ROE matter growth, a accretive, to

probably are I those things they little considering we were bit cohort consumer. to think Synchrony healthier your growth what just a as as the we does think about think about are that 'XX? going investors specifically That's So look a are -- what the like X really be for we thought than in in

Brian Doubles

Yes.

So start let the on consumer. me

do we think -- feel the I look, consumer. good we about

at, at spending, budget. you're being I if how they're that they're think no looking a to managing they're what looking the matter fact you're disciplined,

of the that's seen That's across a lower pretty consistent cohort, income I in they're have think effects pullback inflation. We where the and industry. the feeling

perspective, pulling are disciplined. overextending, a is -- still I think but they're customer, good from back little income I people They're higher that's the thing. a which bit, good healthy. being On not And very credit for think a

that credit. So it's I think of a on did combination what we and

getting took And so with growth long-term little a sacrifice willing to the term we're in the we deliver we're very bit performing, in pleased credit how with the we're actions line are to And here short guidance. that. of

Brian Wenzel

couple if I Erika, add points Yes. here. of a can other

look flat, you overall at consumer higher-end us right, when consumer, the was I we think for when hiring quarter. for consumer, the at look that that

see does nonprime down which So more but actions. the credit the trail, negativity on negative, attracted it we segment, net wasn't more of that of yes, the is lower segment where the it

we pieces So again, when you unpack about feel don't of it, the it. really bad

just to When concept we up all couple you executed you first PPPC, PPPC, that. that. we the bring programs test one, which a in the have for the the control. of things I'd A add and Number get APR around to

control And the are ones So a received terms we see changes see purchase the We ones solid actually rate. group or versus transactor difference not per the conditions. can in behaviors. see revolver active. or the We volume attrition, realization can there can attrition there's is in whether significant that and between that

those sales decline level In may that have, two, while that number seeing some across us there not until same the we are we're PPPC-oriented place. went the [indiscernible] board. gives that holdouts situations, Number seeing So comfort have of necessarily the the place of declines -- into rule of were agreed have put in a we one. couple that terms some they're

point that the off necessarily data driven isn't this another again, So PPPC. of

to value certain point APR, in So off in you're a all look make, discount cards at that. at X% you as higher at proposition I these then you're final the the or XX% the that. when have have we And retailers looking [indiscernible] value looking that like generally proposition look things at to and

bulk the you a That's can dollars of price. someone strong to for support great why kind a someone the in which is fee proposition example charge could proposition, value a that because gap is is several So why of higher believed annual enough RSAs, of hundred that have it. the has an thing a value card

the value look So back at you to step pricing a around I of all you and and elements conclusions. the proposition think the product the take draw before got

Brian Doubles

And partners. our down back we go the point with made earlier, to I sit is that exactly and analysis through that's what

So we the here's say, test. okay,

Here's the control.

are you their or will APRs And trade-offs partners the happen are. our as Here's and frankly, in what as interests impacted, side down that what on move growth are the obviously, we very think interested the if both up aligned they're because well through RSA.

L. Erika Penala

for in investors think helpful group I the that really was color terms of control anecdotes.

I So appreciated that.

Operator

earnings Synchrony's concludes conference This call.

line this a at and your time, have disconnect may wonderful day. You you. Thank

Synchrony Financial (SYF) 28 Jan 252024 Q4 Earnings call transcript