Synchrony Financial (SYF) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that Synchrony Financial surfaced in its latest filing.

• Our interest and fees on loan receivables was $21.7 billion for the year ended December 31, 2025.2025-12-31
• Our over-30 day delinquency rate was 4.49% at December 31, 2025.2025-12-31
• Our full-year net charge-off rate was 5.65% for the year ended December 31, 2025.2025-12-31
• Amazon, Lowe’s, PayPal, Sam’s Club, and TJX Companies accounted for 54% of total interest and fees on loans in 2025; Lowe's, PayPal (including Venmo), and Sam's Club each accounted for more than 10%.2025
• We experienced moderation in payment rates beginning in the second half of 2022 through 2024 due to lower consumer savings and other factors.2022
• We implemented product, pricing and policy changes in anticipation of the CFPB's March 5, 2024 final rule lowering credit card late fee safe harbor from $30 to $8, and made minor modifications in 2025 after partner discussions.2024-03-05
• Completed acquisition of Versatile Credit in October 2025.2025-10
• The principal agreement with Fiserv for technology, production, and online retail deposits services expires in December 2030.2030-12
• At December 31, 2025, we had $75.2 billion in direct deposits and $5.9 billion in deposits originated through third-party firms (including network deposit sweeps procured through a program arranger).2025-12-31
• Since 2022, we have partnered with PayPal Holdings Inc. to offer demand savings accounts exclusively to PayPal customers.2022
• At December 31, 2025, the Bank met or exceeded all applicable requirements to be deemed “well capitalized” for purposes of the FDIA.2025-12-31
• Synchrony's senior unsecured debt is rated BBB (stable) by Fitch and BBB- (stable) by S&P; the Bank's senior unsecured debt is rated BBB (stable) by both Fitch and S&P.
• Average level of securitized financings from third parties was $8.0 billion for 2025 and $7.7 billion for 2024.2025
• In June 2024, the State of Illinois adopted the Interchange Fee Prohibition Act restricting interchange fees on portions of electronic payment transactions attributable to taxes and gratuities.2024-06
• In November 2025, Visa and Mastercard announced a proposed settlement to resolve a class action antitrust lawsuit, which includes reducing the U.S. combined average effective credit card interchange rate by 10 basis points for five years, capping posted U.S. credit card interchange rates at March 2025 levels for five years, instituting a 125 basis points cap on interchange rates for standard consumer credit cards through the settlement agreement term, and permitting merchants to surcharge up to three percent at the brand or product level.2025-11
• We received $1.1 billion of interchange fees for the year ended December 31, 2025.2025-12-31