# Synchrony Financial (SYF) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-29  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/SYF/thesis · /stocks/SYF/memo

## Financial Snapshot

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source: coverage-next-full | ticker: SYF | step: "04" | created: 2026-05-29
---

### Step 04 — Financial Snapshot: Synchrony Financial (SYF)

#### Five-Year P&L Summary (USD Millions)

| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
| Net Interest Income | $9,711 | $11,294 | $13,338 | $14,604 | $14,461 |
| Non-Interest Income | $481 | $380 | $289 | $1,521 | $520 |
| **Total Net Revenue** | **$9,466** | **$8,299** | **$7,662** | **$9,392** | **$9,756** |
| Provision for Credit Losses | $726 | $3,375 | $5,965 | $6,733 | $5,225 |
| Operating Expenses | ~$2,000 | ~$2,500 | ~$2,430 | ~$2,820 | ~$3,400 |
| Pre-Tax Income | ~$5,600 | ~$3,900 | ~$2,900 | ~$4,200 | ~$4,500 |
| Net Income | **$4,179** | **$2,974** | **$2,196** | **$3,427** | **$3,469** |
| Diluted EPS | $7.34 | $6.15 | $5.19 | $8.55 | $9.28 |
| Shares Outstanding (period-end, M) | 527 | 438 | 407 | 389 | 347 |
| Diluted Shares (avg, M) | ~569 | ~484 | ~423 | ~401 | ~374 |

**Revenue note:** "Total Net Revenue" as reported by SYF = Net Interest Income + Other Income (Non-Interest), but then Provision for Credit Losses is subtracted to arrive at Net Revenue After Provision. StockAnalysis reports "Revenue" on a net-of-provision basis. The table above follows SYF's IR reporting convention (NII + non-interest before provision).

**FY2021 note:** Elevated net income reflects COVID-era reserve release; provision was ultra-low ($726M vs. normalized ~$4–6B) as stimulus payments suppressed charge-offs and SYF released ACL reserves built in FY2020.

#### Per-Share Metrics

| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
| EPS (Diluted) | $7.34 | $6.15 | $5.19 | $8.55 | $9.28 |
| Dividends Per Share | $0.88 | $0.92 | $0.92 | $0.96 | $1.00 |
| Book Value Per Share | $23.99 | $26.63 | $32.83 | $41.39 | $46.88 |
| Tangible Book Value/Share | ~$23.50 | ~$26.10 | ~$32.20 | ~$40.70 | ~$46.20 |
| P/E (year-end) | ~11x | ~5x | ~10x | ~6x | ~7x |
| P/TBV (year-end) | ~2.0x | ~0.8x | ~0.9x | ~0.7x | ~1.0x |

*Tangible book ≈ book value less ~$0.7B goodwill/intangibles (primarily from Ally Lending acquisition in 2023 and Pets Best).*

#### Key Profitability Metrics

| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
| Net Interest Margin (NIM) | ~12.8% | ~13.5% | ~14.2% | 14.76% | 15.24% |
| Net Charge-Off (NCO) Rate | ~2.0% | ~3.6% | ~5.9% | 6.31% | 5.65% |
| 30+ Day Delinquency Rate | ~2.4% | ~3.5% | ~4.8% | 4.70% | 4.49% |
| Return on Assets (ROA) | ~4.4% | ~2.8% | ~2.1% | 2.9% | 3.0% |
| Return on Equity (ROE) | ~31% | ~22% | ~16% | ~21% | ~21% |
| Efficiency Ratio | ~21% | ~30% | ~33% | 30.0% | 34.3% |
| CET1 Capital Ratio | ~11.5% | ~11.3% | ~12.0% | 13.3% | 12.6% |

**NIM trend:** NIM expanded from ~12.8% (FY2021) to 15.24% (FY2025) — reflecting higher-for-longer rate environment pushing PLCC APRs (which are prime-indexed) higher, partially offset by rising deposit costs.

**NCO cycle:** FY2021 was the trough (COVID stimulus suppressed defaults). FY2022–2024 saw normalization and overshoot as consumers exhausted savings. FY2025 shows improvement; full normalization target ~4.5%.

#### Balance Sheet Summary

| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
| Total Assets | $95,748 | $104,564 | $117,479 | $119,463 | $119,095 |
| Gross Loan Receivables | $80,740 | $92,470 | $102,988 | $104,721 | $103,808 |
| Net Loan Receivables | $72,052 | $82,943 | $92,417 | $93,792 | $93,366 |
| Total Deposits | $62,270 | $71,735 | $81,153 | $82,062 | $81,144 |
| Long-Term Debt | $14,507 | $14,191 | $15,982 | $15,462 | $15,182 |
| Shareholders' Equity | $13,655 | $12,873 | $13,903 | $16,580 | $16,766 |

**Asset growth:** SYF's receivables grew from $80.7B (FY2021) to $103.8B (FY2025), a ~29% increase over 4 years, despite deliberate portfolio tightening in 2023–2024. Growth came from organic expansion and the Ally Lending acquisition (~$2.2B, March 2023).

#### Cash Flow Summary

| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
| Operating Cash Flow | $7,099 | $6,694 | $8,593 | $9,848 | $9,851 |
| Capital Expenditures | ~$0 | ~$0 | ~$0 | ~$0 | ~$0 |
| Free Cash Flow | $7,099 | $6,694 | $8,593 | $9,848 | $9,851 |
| Dividends Paid | $500 | $434 | $406 | $398 | $427 |
| Share Repurchases | $2,876 | $3,320 | $1,112 | $1,008 | $2,941 |
| Total Capital Returned | $3,418 | $3,796 | $1,560 | $1,478 | $3,451 |

*FCF definition for financial companies: Operating cash flow because capex is minimal and economic capex is embedded in operating expenses (technology, personnel).*

#### Consensus Estimates (FY2026–FY2027)

| Metric | FY2025A | FY2026E | FY2027E |
|---|---|---|---|
| Revenue (net basis) | $9,756M | ~$10,200–10,600M | ~$11,000–11,500M |
| EPS (Diluted) | $9.28 | ~$8.50–9.50 | ~$9.50–11.00 |
| Net Income | $3,469M | ~$3,100–3,400M | ~$3,400–3,800M |

*Note: FY2026E consensus shows some EPS moderation vs FY2025 due to lower non-interest income (Pets Best divestiture gain was one-time in FY2024; FY2025 already excluded it). The EPS run-rate excluding one-time items is ~$9–10 and trending up as credit normalizes.*

#### Valuation Summary (May 2026)
- **Share price (approx.):** ~$65–70
- **Market Cap:** ~$22–24B
- **P/Diluted EPS (TTM):** ~7x
- **P/Tangible Book Value:** ~1.4–1.5x
- **Dividend yield:** ~1.5%
- **Dividend payout ratio:** ~11% (very low; most capital returned via buybacks)

#### Key Takeaways
1. **EPS growth is structurally driven by buybacks** — diluted shares fell from 569M (FY2021 avg) to ~374M (FY2025 avg), a 34% reduction. Even flat net income produces meaningfully growing EPS.
2. **NIM expansion is genuine** — 15.24% NIM is near the high end of historical range, supported by prime-indexed PLCC APRs. Rate cuts should not materially compress NIM in near term.
3. **NCO normalization is the key forward catalyst** — returning to 4.5% from 5.65% would reduce provision ~$1.2B, adding ~$0.85B after-tax to earnings.
4. **Book value per share has nearly doubled since 2021** — from $24 to $47, reflecting retained earnings accumulation even while returning capital via buybacks.

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/SYF/fundamental

## Navigation

- Overview: /stocks/SYF
- Financials (this page): /stocks/SYF/financials
- Thesis: /stocks/SYF/thesis
- Investment Memo: /stocks/SYF/memo
- Coverage universe: /stocks