Synchrony Financial (NYSE:SYF) reported second-quarter earnings that comfortably beat analyst predictions, though revenue came in just under estimates. Following the release, the company’s stock dropped 1.35% as investors digested the mixed results.
For the quarter, the financial services firm posted adjusted earnings per share of $2.50, surpassing the consensus forecast of $1.79 by a significant margin of $0.71. Net income surged 50% to $967 million compared to $643 million in Q2 2024.
Revenue, however, totaled $3.65 billion, slightly below the expected $3.68 billion. Purchase volume declined 2% to $46.1 billion, and loan receivables also fell 2% to $99.8 billion.
“Synchrony’s second quarter performance highlighted the inherent resilience of our business,” said Brian Doubles, Synchrony’s President and Chief Executive Officer. “During the second quarter 2025, we continued to grow and win new partners, diversify our programs, products and markets, and innovate to deliver still greater customer experiences.”
The company’s net interest margin improved by 32 basis points, reaching 14.78%, while the efficiency ratio rose 240 basis points to 34.1%. Return on assets increased by 100 basis points to 3.2%, and return on equity jumped 6 percentage points to 23.1%.
Brian Wenzel, Synchrony’s Executive Vice President and Chief Financial Officer, added, “Our credit trends continued to outperform relative to the industry and our original outlook and are a testament to Synchrony’s disciplined and effective approach to underwriting and credit management.”
The provision for credit losses declined by $545 million to $1.1 billion. This improvement was driven by a reserve release of $265 million compared to a $70 million build last year, alongside a $210 million reduction in net charge-offs.
Synchrony Financial stock price
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.