Synchrony Financial (SYF) released its monthly charge-off and delinquency statistics as of June 30, 2025, providing critical insights into its credit portfolio performance amid evolving economic conditions. This report, sourced directly from the company’s 8-K filing with the SEC, highlights key metrics that reflect the health and risk profile of Synchrony’s loan receivables portfolio.
As of June 30, 2025, Synchrony’s period-end loan receivables stood at \(99.8 billion, a slight decrease from \)102.3 billion a year earlier. The average loan receivables, including those held for sale, were $99.5 billion for the month, indicating a stable loan book size over the period. The 30+ day delinquency rate, a crucial indicator of credit risk, was recorded at 4.2%, consistent with the previous month and slightly improved from 4.5% a year ago. This suggests a modest improvement in borrower payment behavior.
The net charge-off rate, which measures the percentage of loans written off as uncollectible, was 5.8% annualized for June 2025, up from 6.1% a year earlier but showing some month-to-month volatility. Adjusted net charge-offs, which smooth out recovery timing effects, stood at 5.7%. These figures underscore the ongoing credit challenges faced by Synchrony but also reflect the company’s proactive risk management strategies.
Contextualizing these figures with Synchrony’s recent financial performance, the company reported a net income of approximately \(3.5 billion for the fiscal year 2024, supported by robust net interest income and disciplined credit loss provisions. The provision for loan losses was \)6.7 billion in 2024, reflecting the company’s cautious approach to credit risk amid uncertain economic conditions.
Synchrony’s previous earnings calls have emphasized the resilience of its diversified business model, strategic pricing and policy adjustments, and effective risk-sharing arrangements with partners. These factors have contributed to stable loan receivables yields and controlled delinquency rates despite macroeconomic pressures.
Looking forward, Synchrony projects loan receivables growth of 6% to 8% for 2024, with net interest income expected between \(17.5 billion and \)18.5 billion. The company anticipates net charge-offs to peak in the first half of the year before normalizing, supported by ongoing credit normalization and portfolio management.
In summary, Synchrony Financial’s June 2025 credit statistics reveal a cautiously optimistic credit environment with stable delinquency rates and manageable charge-offs. The company’s strategic initiatives and financial discipline position it well to navigate the evolving credit landscape and deliver sustained shareholder value.
For detailed financial data and further insights, refer to the original 8-K filing here: Synchrony Financial 8-K June 2025.
Tags: SYF, Synchrony Financial, Q2 2025, credit risk management, loan receivables, net charge-offs