Synchrony Financial reported its card platform revenue increased 5%, driven primarily by purchase volume growth of 10% and period-end loan receivables growth of 7%, with broad-based growth across partner programs. Payment Solutions platform revenue increased 8%, driven primarily by purchase volume growth of 10% and period-end loan receivables growth of 11%, with solid growth across industry segments led by home furnishings, automotive products, and power equipment.
Synchrony Financial also reported return on assets was 3.0% and return on equity was 20.8%. Net interest margin declined 304 basis points to 15.79% primarily due to the impact from the significant increase in liquidity versus the prior year. Efficiency ratio increased to 32.2% mainly due to increased investments in growth and infrastructure build in preparation for separation from GE.
Loans 30+ days past due as a percentage of period-end loan receivables improved 30 basis points to 3.79%. Net charge-offs as a percentage of total average loan receivables improved 33 basis points to 4.53%. The allowance for loan losses as a percentage of total period-end receivables was 5.59%.
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