Synchrony Financial reports monthly credit stats

Published 17/03/2025, 11:04
Synchrony Financial reports monthly credit stats

Synchrony Financial (NYSE:SYF), a premier consumer financial services company with a market capitalization of $20.74 billion, disclosed its latest monthly charge-off and delinquency statistics on Monday. According to InvestingPro data, the company has maintained strong financial metrics, including a 22.58% revenue growth in the last twelve months. The data, part of a routine monthly disclosure, represents figures up to February 28, 2025.

The company, headquartered in Stamford, Connecticut, revealed that it will continue to provide these credit performance metrics monthly. Additionally, Synchrony Financial noted that the statistics for the last month of each calendar quarter would be released alongside the company’s quarterly financial results, with the next earnings report scheduled for April 29, 2025. InvestingPro analysis indicates the company currently trades at an attractive P/E ratio of 6.14, suggesting potential value for investors.

While the specific numbers were not detailed in the announcement, such statistics are critical indicators of the financial health of credit portfolios, reflecting the percentage of loans the company does not expect to collect and the proportion of loans with payments overdue.

The release of this information aligns with Synchrony Financial’s commitment to transparency regarding its financial performance. It also provides investors and analysts with up-to-date data to assess the company’s credit risk and operational efficiency.

The information presented in this report, as well as in Exhibit 99.1 of the SEC filing, is not considered filed for purposes of the Securities Exchange Act of 1934 and is not subject to the liabilities of that section. It is also not to be incorporated by reference into any filings under the Securities Act of 1933 or the Securities Exchange Act of 1934, except as explicitly stated in such filings.

Investors in Synchrony Financial will likely scrutinize these statistics to gauge the company’s financial stability and the quality of its loan portfolio, factors that can influence the company’s stock performance on the New York Stock Exchange.

This report is based on a press release statement and provides a factual summary of Synchrony Financial’s disclosed credit statistics as required by regulatory standards.

In other recent news, Synchrony Financial reported its fourth-quarter earnings for 2024, with earnings per share (EPS) of $1.91, slightly exceeding analyst expectations of $1.89. However, the company’s revenue came in at $3.8 billion, falling short of the anticipated $3.84 billion. In a strategic financial move, Synchrony Financial issued $800 million in senior notes due in 2031, carrying a 5.450% interest rate, which is expected to enhance the company’s financial flexibility. Meanwhile, BofA Securities and Goldman Sachs both reaffirmed their Buy ratings on Synchrony Financial, setting price targets at $85 and $82, respectively, highlighting confidence in the company’s business model and credit quality metrics.

Synchrony Financial also disclosed its monthly credit statistics, showing that delinquency rates remained stable at 4.70% month-over-month, while net charge-offs decreased to 6.20%, both outperforming seasonal trends. The company’s strategic initiatives, including the launch of new products like Synchrony Pay Later, resulted in the addition of 5 million new accounts in the fourth quarter. Analysts from BofA Securities suggested that potential regulatory changes might not significantly impact the company’s valuation, emphasizing the enduring impact of mitigant actions. These developments reflect Synchrony Financial’s ongoing efforts to optimize its funding structure, maintain a strong balance sheet, and navigate the evolving financial landscape.

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