Driving Business Growth
In 2017, we delivered solid financial performance; some highlights include:
- Net earnings of $1.9 billion and adjusted net earnings, excluding the impact of the Tax Cuts and Jobs Act of 2017, of $2.1 billion1
- Net interest income increased 11% to $15 billion
- Loan receivables grew more than 7% to $82 billion
- Purchase volume increased 5%, with $132 billion in sales financed
- Total deposits grew 9% to $56 billion
- Dividend increased to $0.56 per share
- Announced $1.64 billion share repurchase program
We achieved these results through organic growth, new deals and the renewal of key partnerships.
Our focus on big data and innovation is driving robust consumer value propositions and world-class digital experiences, which allow our partners to differentiate themselves.
We continue to pursue new opportunities to expand our business, particularly in areas where we see outsized opportunity. One significant and exciting example in 2017 was our agreement with PayPal to meaningfully broaden and extend our strategic relationship. This expanded partnership is especially important because it deepens our reach within the rapidly growing mobile and online payments channels.
We also continue to explore new opportunities to leverage our expertise and increase our product offerings. In 2017, we successfully expanded our reach in travel and entertainment and the auto marketplace by launching co-branded programs with Cathay Pacific and Nissan and Infiniti.
Extending the utility of our cards is another key focus area, broadening where our cards are accepted so that consumers can use them more frequently. This is especially important in our CareCredit and Payment Solutions sales platforms where we have been working to encourage more repeat purchases.
In 2017, we announced the rollout of our new CareCredit Dual Card™. This product combines the promotional credit capabilities of the core CareCredit product with the added convenience of being able to use the card anywhere and earn points for those purchases. We further expanded the CareCredit network with our acquisition of the Citi Health Card portfolio.
In Payment Solutions, we launched the Synchrony Car Care network. Members now have the convenience of one card to pay for and finance comprehensive auto care at more than 30,000 service and parts locations, as well as buy fuel at more than 185,000 fuel stations nationwide. Similarly, we launched the Synchrony HOME credit card network, with acceptance at more than 10,000 retail locations. Both networks will offer enhanced digital tools to allow users to easily locate nearby network partners, track expenses, manage their accounts and access cardholder-only offers.
These expansions and extensions complement our core businesses while giving us a strong base from which to grow in key markets such as the home, health and auto industries.
In addition, we continue to invest in our banking platform as retail deposits remain an important funding source for our business and we continue to broaden our products and servicing options. In 2017, Synchrony Bank grew deposits more than $4 billion, or 9%, to $56 billion.
Expanding Our Digital Capabilities
We invest heavily in leading-edge mobile and online capabilities to enable new products and programs to drive growth, reduce fraud and enhance customer service.
As we help our partners anticipate and deliver the experiences and tools consumers want, we are driving innovation through acquisitions, strategic investments and a growing number of tech-savvy forward thinkers.
Early in 2017, we acquired GPShopper, an innovative developer of mobile applications that provide a full suite of commerce, engagement and analytic tools. With GPShopper, we are expanding our mobile engagement capabilities, while improving the functionality and ease of use for mobile users and our partners. Investments like this help us stay ahead of the ever-changing intersection of physical and digital commerce in retail.
Through Synchrony Ventures, we look for and invest in early-stage companies that provide differentiated, emerging technology and products. We are focused on companies in areas of strategic importance, including enhancing customer experience, fraud detection and identity authentication.
During 2017, we expanded our in-house innovation capabilities. We now have four Innovation Stations — cross-functional teams focused on digital, data analytics and enterprise operations — to test new ideas and technologies, solve client problems and improve speed to market through agile development of new products.