Synchrony Financial beats Q2 earnings, revenue falls short of estimates

Investing.com -- Synchrony Financial (NYSE:SYF) on Tuesday reported second quarter earnings that significantly exceeded analyst expectations, though revenue came in slightly below forecasts.

The company’s stock fell 1.35% following the announcement as investors reacted to mixed results.

The financial services company posted adjusted earnings per share of $2.50 for the second quarter of 2025, handily beating the analyst estimate of $1.79 by $0.71.

However, revenue for the quarter came in at $3.65 billion, falling short of the consensus estimate of $3.68 billion.

Net earnings jumped 50% to $967 million compared to $643 million in the second quarter of 2024.

Despite the strong profit performance, purchase volume decreased 2% to $46.1 billion and loan receivables also declined 2% to $99.8 billion.

"Synchrony’s second quarter performance highlighted the inherent resilience of our business," said Brian Doubles, Synchrony’s President and Chief Executive Officer.

"During the second quarter 2025, we continued to grow and win new partners, diversify our programs, products and markets, and innovate to deliver still greater customer experiences."

The company’s net interest margin increased 32 basis points to 14.78%, while the efficiency ratio increased 240 basis points to 34.1%.

Return on assets improved 100 basis points to 3.2%, and return on equity rose 6 percentage points to 23.1%.

Brian Wenzel, Synchrony’s Executive Vice President and Chief Financial Officer, noted, "Our credit trends continued to outperform relative to the industry and our original outlook and are a testament to Synchrony’s disciplined and effective approach to underwriting and credit management."

The provision for credit losses decreased $545 million to $1.1 billion, driven by a reserve release of $265 million versus a build of $70 million in the prior year and a net charge-off decrease of $210 million.

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