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NEW YORK - Synchrony Financial (NYSE:SYF) reported fourth quarter earnings that surpassed analyst expectations, sending its stock up 2.13% in response to the news, on Tuesday.
The financial services company posted adjusted earnings per share of $1.91, beating the analyst consensus of $1.89 by $0.02. Revenue for the quarter came in at $3.8 billion, slightly below the estimated $3.84 billion. Compared to the same quarter last year, interest and fees on loans increased 3% to $5.5 billion, driven primarily by growth in average loan receivables.
Net earnings for the fourth quarter jumped 76% to $774 million, compared to $440 million in the year-ago period. The company's provision for credit losses decreased by $243 million to $1.6 billion, driven by a reserve release of $100 million compared to a reserve build of $402 million in the prior year.
Brian Wenzel, Synchrony's Executive Vice President and Chief Financial Officer, commented on the results: "Synchrony delivered strong fourth quarter financial results, reflecting the inherent resilience that comes from our diversified portfolio of products and spend categories, our balanced approach to underwriting and credit management and our dynamic technology platform."
The company highlighted its business achievements, including the addition or renewal of nearly 30 programs and the extension of collaborations with major partners like Sam's Club and JCPenney.
Synchrony's other income increased $57 million to $128 million, while other expenses decreased $49 million, or 4%, to $1.3 billion. The company attributed the expense reduction to prior year restructuring costs and lower operational losses in the current year.
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