For the three months ended September 30, 2024, Synchrony Financial reported a financing volume of $45.0 billion, a decrease of 4.3% compared to the same period in 2023. For the nine months ended September 30, 2024, the total financing volume reached $134.2 billion. The company had 70.4 million average active accounts for the quarter and 71.1 million for the nine-month period. Loan receivables increased by 4.4% to $102.2 billion year-over-year, while total deposits rose to $82.3 billion, accounting for 84% of total funding sources.
Net earnings for the third quarter were $789 million, up from $628 million in the prior year, while net earnings for the nine months increased to $2.7 billion from $1.8 billion. Net interest income for the quarter was $4.6 billion, a 5.7% increase from the same period in 2023, and for the nine months, it rose by 7.1% to $13.4 billion. However, the net charge-off rate increased to 6.06% for the quarter and 6.26% for the nine months, reflecting higher delinquency rates, which rose to 4.78% of loan receivables.
The company has been proactive in adjusting to regulatory changes, particularly the CFPB's final rule on credit card late fees, which is expected to impact interest and fees on loan receivables. The implementation of this rule has been delayed due to an injunction, but Synchrony is preparing for its effects.
Strategically, Synchrony completed the acquisition of Ally Lending for $2.0 billion in March 2024, which added $2.2 billion in loan receivables. The company also sold its subsidiary Pets Best, resulting in a gain of $1.1 billion. Additionally, Synchrony has renewed or added over 55 partner agreements across various sales platforms, enhancing its market presence.
The company’s efficiency ratio improved to 31.2% for the third quarter, down from 33.2% in the previous year, indicating better operational efficiency. The allowance for credit losses increased to $11.0 billion, reflecting economic conditions and the impact of the Ally Lending acquisition.
As of September 30, 2024, Synchrony maintained a strong liquidity position with $19.7 billion in liquid assets and met all regulatory capital requirements, with total risk-based capital at $16.9 billion, representing a ratio of 16.4%. The company continues to navigate a challenging economic environment while focusing on strategic growth and operational efficiency.
About Synchrony Financial
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