synchronyfinancial.com
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Financial Highlights

“Synchrony’s growth in 2017 was driven by the strong value propositions on our cards and extensive work to help our partners drive growth. Continued investments in mobile, innovation and data analytics are enhancing our ability to drive organic growth and win new programs.”

– Brian Doubles
EVP and Chief Financial Officer
For the years ended, and at, December 31,
(in millions unless otherwise stated except for per share data and ratios)
2017 2016
Financial Highlights
Net interest income $15,016 $13,530
Interest and fees on loans $16,219 $14,682
Net earnings $1,935 $2,251
Adjusted net earnings(1) $2,095 $2,251
Diluted earnings per share $2.42 $2.71
Shares outstanding(2) 799.7 831.5
Period End
Total assets $95,808 $90,207
Loan receivables 81,947 76,337
Deposits 56,488 52,055
Common equity Tier 1 capital ratio (Basel III fully phased-in)(3) 15.8% 17.0%
Performance Metrics
Purchase volume (in billions)(4) $131.8 $125.5
Active accounts (in thousands)(5) 74,541 71,890
Average active accounts (in thousands)(5) 69,968 66,928
Net interest margin(6) 16.35% 16.10%
Net charge-off ratio(7) 5.37% 4.57%
30+ delinquency rate(8) 4.67% 4.32%
Efficiency ratio(9) 30.3% 31.1%
Return on assets(10) 2.1% 2.7%
Adjusted return on assets(11) 2.3% 2.7%

Adjusted earnings is a non-GAAP measure. This measure represents the corresponding GAAP measure, adjusted to exclude the effects to Provision for income taxes in the quarter ended December 31, 2017, resulting from the Tax Cuts and Jobs Act of 2017. The effects primarily relate to additional tax expense arising from the remeasurement of our net deferred tax asset to reflect the reduction in the U.S. corporate tax rate from 35% to 21%. See page 103 in our Form 10-K for reconciliation to the most directly comparable GAAP measure.

Diluted weighted average shares outstanding.

Non-GAAP measure. See page 103 in our Form 10-K for reconciliation to the most directly comparable GAAP measure.

Purchase volume, or net credit sales, represents the aggregate amount of charges incurred on credit cards or other credit product accounts less returns during the period. Purchase volume includes activity related to our portfolios classified as held for sale.

Active accounts represent credit card or installment loan accounts on which there has been a purchase, payment or outstanding balance in the current month.

Net interest margin represents net interest income divided by average interest-earning assets.

Net charge-off ratio represents net charge-offs as a percentage of average loan receivables.

Based on customer statement-end balances extrapolated to the respective period-end date.

Efficiency ratio represents (i) other expense, divided by (ii) net interest income, after retailer share arrangements, plus other income.

Return on assets represents net earnings as a percentage of average total assets.

Adjusted return on assets represents Adjusted net earnings as a percentage of average total assets. Adjusted net earnings is a non-GAAP measure. See page 103 in our Form 10-K for reconciliation to the most directly comparable GAAP measure.