Fri, Jul 19, 8:22 PM (50 days ago)
Synchrony Financial's Q2 2024 10-Q report highlights a 13% increase in net earnings to $643 million and a 7.9% rise in loan receivables to $102.3 billion year-over-year. The growth was driven by higher net interest income, which rose 6.9% to $4.4 billion, and a 10.2% increase in interest and fees on loans. However, the provision for credit losses surged by 22.3% to $1.7 billion due to higher net charge-offs. The net charge-off rate increased to 6.42%, and over-30-day delinquencies rose to 4.47%. The company completed the acquisition of Ally Lending and sold Pets Best, resulting in a $1.1 billion gain. Deposits grew by 2.4% to $83.1 billion, representing 84% of funding sources. The CFPB's final rule on credit card late fees remains uncertain due to ongoing litigation, posing potential risks to future earnings.