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Synchrony Financial (SYF-3.72%) has submitted its 10-K filing for the fiscal year ended December 31, 2024.
The filing reports net earnings of $3.5 billion for the year, a 56.3% increase from the previous year, driven by a significant gain from the sale of Pets Best and higher net interest income.
Loan receivables grew by 1.7% to $104.7 billion, influenced by lower customer payment rates and the acquisition of Ally Lending, despite a decrease in purchase volume.
Net interest income rose by 6.0% to $18.0 billion, with interest and fees on loans increasing by 8.5%, supported by product, pricing, and policy changes.
Retailer share arrangements decreased by 6.9% to $3.4 billion, attributed to higher net charge-offs.
The provision for credit losses increased to $6.7 billion, reflecting higher net charge-offs, while the allowance for credit losses rose to 10.44% of period-end loan receivables.
Synchrony reported a gain of $1.1 billion from the sale of Pets Best, contributing to a $1.2 billion increase in other income.
The company declared and paid dividends totaling $398 million and repurchased $1.0 billion of its common stock during the year.
Synchrony issued $500 million of Series B preferred stock and maintained a Basel III common equity Tier 1 ratio of 13.3% at year-end.
The filing outlines the impact of the CFPB's final rule on credit card late fees, which, if implemented, could significantly reduce fee income. Synchrony has already made product, pricing, and policy adjustments in anticipation of the rule.
Synchrony continues to focus on expanding its digital and mobile capabilities, with 57% of consumer credit card applications processed through digital channels in 2024.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Synchrony Financial annual 10-K report dated February 7, 2025. To report an error, please email earnings@qz.com.