Synchrony Financial continues to dig itself into a hole with retail credit cards and why it’s up for grabs. The Company reported its card platform revenue increased dismally at 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%.
For data, background and forecasts on Synchrony Financial: Search CardWeb.com’s CardFlash® Library of more than 58,000 archived articles; Access CardWeb.com’s CardData® for current and historical Performance, Portfolios, Profiles, etc. Visit RAM Research® (ramresearch.com) for quarterly and annual forecasts covering more than 150 metrics. [complimentary or deeply discounted access to CardWeb.com subscribers].
Additional database resources include CardWeb.com’s CardExecs® – comings & goings of payments movers & shakers; CardWeb.com’s CardWatch® – ears & eyes on marketing globally (57K items); and CardWeb.com’s CardPixes® – form & function of card design (7K items).