syf-20230331

Forward-looking statements are based on management’s current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, actual results could differ materially from those indicated in these forward-looking statements. Factors that could cause actual results to differ materially include global political, economic, business, competitive, market, regulatory and other factors and risks, such as: the impact of macroeconomic conditions and whether industry trends we have identified develop as anticipated, including the future impacts of the novel coronavirus disease (“COVID-19”) outbreak and measures taken in response thereto for which future developments are highly uncertain and difficult to predict; retaining existing partners and attracting new partners, concentration of our revenue in a small number of partners, and promotion and support of our products by our partners; cyber-attacks or other security breaches; disruptions in the operations of our and our outsourced partners' computer systems and data centers; the financial performance of our partners; the sufficiency of our allowance for credit losses and the accuracy of the assumptions or estimates used in preparing our financial statements, including those related to the CECL accounting guidance; higher borrowing costs and adverse financial market conditions impacting our funding and liquidity, and any reduction in our credit ratings; our ability to grow our deposits in the future; damage to our reputation; our ability to securitize our loan receivables, occurrence of an early amortization of our securitization facilities, loss of the right to service or subservice our securitized loan receivables, and lower payment rates on our securitized loan receivables; changes in market interest rates and the impact of any margin compression; effectiveness of our risk management processes and procedures, reliance on models which may be inaccurate or misinterpreted, our ability to manage our credit risk; our ability to offset increases in our costs in retailer share arrangements; competition in the consumer finance industry; our concentration in the U.S. consumer credit market; our ability to successfully develop and commercialize new or enhanced products and services; our ability to realize the value of acquisitions and strategic investments; reductions in interchange fees; fraudulent activity; failure of third-parties to provide various services that are important to our operations; international risks and compliance and regulatory risks and costs associated with international operations; alleged infringement of intellectual property rights of others and our ability to protect our intellectual property; litigation and regulatory actions; our ability to attract, retain and motivate key officers and employees; tax legislation initiatives or challenges to our tax positions and/or interpretations, and state sales tax rules and regulations; regulation, supervision, examination and enforcement of our business by governmental authorities, the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) and other legislative and regulatory developments and the impact of the Consumer Financial Protection Bureau's (the “CFPB”) regulation of our business; impact of capital adequacy rules and liquidity requirements; restrictions that limit our ability to pay dividends and repurchase our common stock, and restrictions that limit the Bank’s ability to pay dividends to us; regulations relating to privacy, information security and data protection; use of third-party vendors and ongoing third-party business relationships; and failure to comply with anti-money laundering and anti-terrorism financing laws.

For the reasons described above, we caution you against relying on any forward-looking statements, which should also be read in conjunction with the other cautionary statements that are included elsewhere in this report and in our public filings, including under the heading “Risk Factors Relating to Our Business” and “Risk Factors Relating to Regulation” in our 2022 Form 10-K. You should not consider any list of such factors to be an exhaustive statement of all of the risks, uncertainties, or potentially inaccurate assumptions that could cause our current expectations or beliefs to change. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as otherwise may be required by law.

We offer our credit products primarily through our wholly-owned subsidiary, the Bank. In addition, through the Bank, we offer, directly to retail, affinity relationships and commercial customers, a range of deposit products insured by the Federal Deposit Insurance Corporation (“FDIC”), including certificates of deposit, individual retirement accounts (“IRAs”), money market accounts, savings accounts and sweep and affinity deposits. We also take deposits at the Bank through third-party securities brokerage firms that offer our FDIC-insured deposit products to their customers. We have significantly expanded our online direct banking operations in recent years and our deposit base serves as a source of stable and diversified low cost funding for our credit activities. At March 31, 2023, we had $74.4 billion in deposits, which represented 83% of our total funding sources.

Our Home & Auto sales platform provides comprehensive payments and financing solutions with integrated in-store and digital experiences through a broad network of partners and merchants providing home and automotive merchandise and services, as well as our Synchrony Car Care network and Synchrony HOME credit card offering. Our Home & Auto sales platform partners include a wide range of key retailers in the home improvement, furniture, bedding, appliance and electronics industry, such as Ashley HomeStores LTD, Lowe's, and Mattress Firm, as well as automotive merchandise and services, such as Chevron and Discount Tire. In addition, we also have program agreements with buying groups, manufacturers and industry associations, such as Nationwide Marketing Group and the Home Furnishings Association.

•Dual Cards and General Purpose Co-Branded Cards. Our patented Dual Cards are credit cards that function as private label credit cards when used to purchase goods and services from our partners, and as general purpose credit cards when used to make purchases from other retailers wherever cards from those card networks are accepted or for cash advance transactions. We also offer general purpose co-branded credit cards that do not function as private label credit cards, as well as a Synchrony-branded general purpose credit card. Dual Cards and general purpose co-branded credit cards are offered across all of our sales platforms and credit is typically extended on standard terms only. We offer either Dual Cards or general purpose co-branded credit cards through over 15 of our large partners, of which the majority are Dual Cards, as well as our CareCredit Dual Card. Consumer Dual Cards and Co-Branded cards totaled 24% of our total loan receivables portfolio at March 31, 2023.

In addition to the seasonal variance in loan receivables discussed above, we also typically experience a seasonal increase in delinquency rates and delinquent loan receivables balances during the third and fourth quarters of each year due to lower customer payment rates, resulting in higher net charge-off rates in the first and second quarters. Our delinquency rates and delinquent loan receivables balances typically decrease during the subsequent first and second quarters as customers begin to pay down their loan balances and return to current status, resulting in lower net charge-off rates in the third and fourth quarters. Because customers who were delinquent during the fourth quarter of a calendar year have a higher probability of returning to current status when compared to customers who are delinquent at the end of each of our interim reporting periods, we expect that a higher proportion of delinquent accounts outstanding at an interim period end will result in charge-offs, as compared to delinquent accounts outstanding at a year end. Consistent with this historical experience, we generally experience a higher allowance for credit losses as a percentage of total loan receivables at the end of an interim period, as compared to the end of a calendar year. In addition, even in instances of improving credit metrics such as declining past due amounts, we may experience an increase in our allowance for credit losses at an interim period end compared to the prior year end, reflecting these same seasonal trends.

However, in addition to these seasonal trends, the elevated customer payment behavior we have experienced in recent years and more recently the subsequent moderation from these elevated levels, has also significantly impacted our key financial metrics and the fluctuations experienced between quarterly periods. The effects from these changes in customer payment behavior have resulted in either partial, or in some instances full, offset to the impact from the ongoing seasonal trends discussed above. This is most evident in our past due balances which increased to $3.5 billion at March 31, 2023 from $3.4 billion at December 31, 2022 due to the impact from lower customer payment rates which exceeded the effects of the seasonal trends we experienced. The same factors also provided a partial offset to the seasonal decrease in our loan receivables in the first quarter of 2023.


	At and for the
	Three months ended March 31,
($ in millions)	2023			2022
Financial Position Data (Average):
Loan receivables, including held for sale	$	90,815		$	82,747
Total assets	$	105,842		$	95,556
Deposits	$	72,627		$	62,688
Borrowings	$	14,671		$	14,046
Total equity	$	13,414		$	13,731
Selected Performance Metrics:
Purchase volume(1)(2)	$	41,557		$	40,490
Home & Auto	$	10,863		$	10,260
Digital	$	12,261		$	11,196
Diversified & Value	$	13,439		$	11,558
Health & Wellness	$	3,690		$	3,107
Lifestyle	$	1,302		$	1,195
Corp, Other	$	2		$	3,174
Average active accounts (in thousands)(2)(3)	69,494			70,127
Net interest margin(4)	15.22		%	15.80		%
Net charge-offs	$	1,006		$	558
Net charge-offs as a % of average loan receivables, including held for sale	4.49		%	2.73		%
Allowance coverage ratio(5)	10.44		%	10.96		%
Return on assets(6)	2.3		%	4.0		%
Return on equity(7)	18.2		%	27.5		%
Equity to assets(8)	12.67		%	14.37		%
Other expense as a % of average loan receivables, including held for sale	5.00		%	5.09		%
Efficiency ratio(9)	35.0		%	37.2		%
Effective income tax rate	23.9		%	24.4		%
Selected Period-End Data:
Loan receivables	$	91,129		$	78,916
Allowance for credit losses	$	9,517		$	8,651
30+ days past due as a % of period-end loan receivables(10)	3.81		%	2.78		%
90+ days past due as a % of period-end loan receivables(10)	1.87		%	1.30		%
Total active accounts (in thousands)(2)(3)	68,589			69,122

______________________


	2023						2022
Three months ended March 31 ($ in millions)	Average Balance		Interest Income / Expense		Average Yield / Rate(1)		Average Balance		Interest Income/ Expense		Average Yield / Rate(1)
Assets
Interest-earning assets:
Interest-earning cash and equivalents(2)	$	12,365	$	140	4.59	%	$	8,976	$	5	0.23	%
Securities available for sale	4,772		30		2.55	%	5,513		9		0.66	%
Loan receivables, including held for sale(3):
Credit cards	85,904		4,497		21.23	%	78,564		3,913		20.20	%
Consumer installment loans	3,103		83		10.85	%	2,682		66		9.98	%
Commercial credit products	1,697		34		8.13	%	1,434		28		7.92	%
Other	111		2		7.31	%	67		1		NM
Total loan receivables, including held for sale	90,815		4,616		20.61	%	82,747		4,008		19.64	%
Total interest-earning assets	107,952		4,786		17.98	%	97,236		4,022		16.78	%
Non-interest-earning assets:
Cash and due from banks	1,024						1,626
Allowance for credit losses	(9,262)						(8,675)
Other assets	6,128						5,369
Total non-interest-earning assets	(2,110)						(1,680)
Total assets	$	105,842					$	95,556
Liabilities
Interest-bearing liabilities:
Interest-bearing deposit accounts	$	72,216	$	557	3.13	%	$	62,314	$	127	0.83	%
Borrowings of consolidated securitization entities	6,229		77		5.01	%	6,827		33		1.96	%

Senior and subordinated unsecured notes	8,442		101		4.85	%	7,219		73		4.10	%

Total interest-bearing liabilities	86,887		735		3.43	%	76,360		233		1.24	%
Non-interest-bearing liabilities:
Non-interest-bearing deposit accounts	411						374
Other liabilities	5,130						5,091
Total non-interest-bearing liabilities	5,541						5,465
Total liabilities	92,428						81,825
Equity
Total equity	13,414						13,731
Total liabilities and equity	$	105,842					$	95,556
Interest rate spread(4)					14.55	%					15.54	%
Net interest income			$	4,051					$	3,789
Net interest margin(5)					15.22	%					15.80	%

____________________

All of our securitized financings include early repayment triggers, referred to as early amortization events, including events related to material breaches of representations, warranties or covenants, inability or failure of the Bank to transfer loan receivables to the trusts as required under the securitization documents, failure to make required payments or deposits pursuant to the securitization documents, and certain insolvency-related events with respect to the related securitization depositor, Synchrony (solely with respect to SYNCT) or the Bank. In addition, an early amortization event will occur with respect to a series if the excess spread as it relates to a particular series or for the trust, as applicable, falls below zero. Following an early amortization event, principal collections on the loan receivables in the applicable trust are applied to repay principal of the trust's asset-backed securities rather than being available on a revolving basis to fund the origination activities of our business. The occurrence of an early amortization event also would limit or terminate our ability to issue future series out of the trust in which the early amortization event occurred. No early amortization event has occurred with respect to any of the securitized financings in SYNCT, SFT or SYNIT.

(1)Represents the excess spread (generally calculated as interest income collected from the applicable pool of loan receivables less applicable net charge-offs, interest expense and servicing costs, divided by the aggregate principal amount of loan receivables in the applicable pool) for SFT or, in the case of SYNCT, a range of the excess spreads relating to the particular series issued within such trust or, in the case of SYNIT, the excess spread relating to the one outstanding series issued within such trust, in all cases omitting any series that have not been outstanding for at least three full monthly periods and calculated in accordance with the applicable trust or series documentation, for the three securitization monthly periods ended March 31, 2023.

We rely significantly on dividends and other distributions and payments from the Bank for liquidity; however, bank regulations, contractual restrictions and other factors limit the amount of dividends and other distributions and payments that the Bank may pay to us. For a discussion of regulatory restrictions on the Bank’s ability to pay dividends, see “Regulation—Risk Factors Relating to Regulation—We are subject to restrictions that limit our ability to pay dividends and repurchase our common stock; the Bank is subject to restrictions that limit its ability to pay dividends to us, which could limit our ability to pay dividends, repurchase our common stock or make payments on our indebtedness” and “Regulation—Regulation Relating to Our Business—Savings Association Regulation—Dividends and Stock Repurchases” in our 2022 Form 10-K.

In preparing our condensed consolidated financial statements, we have identified certain accounting estimates and assumptions that we consider to be the most critical to an understanding of our financial statements because they involve significant judgments and uncertainties. The critical accounting estimates we have identified relate to allowance for credit losses and fair value measurements. These estimates reflect our best judgment about current, and for some estimates future, economic and market conditions and their effects based on information available as of the date of these financial statements. If these conditions change from those expected, it is reasonably possible that these judgments and estimates could change, which may result in incremental losses on loan receivables, or material changes to our Condensed Consolidated Statement of Financial Position, among other effects. See “Management's Discussion and Analysis—Critical Accounting Estimates” in our 2022 Form 10-K, for a detailed discussion of these critical accounting estimates.


	Three months ended March 31,
($ in millions, except per share data)	2023		2022
Interest income:
Interest and fees on loans (Note 4)	$	4,616	$	4,008
Interest on cash and debt securities	170		14
Total interest income	4,786		4,022
Interest expense:
Interest on deposits	557		127
Interest on borrowings of consolidated securitization entities	77		33
Interest on senior and subordinated unsecured notes	101		73

Total interest expense	735		233
Net interest income	4,051		3,789
Retailer share arrangements	(917)		(1,104)

Provision for credit losses (Note 4)	1,290		521
Net interest income, after retailer share arrangements and provision for credit losses	1,844		2,164
Other income:
Interchange revenue	232		230
Debt cancellation fees	115		89
Loyalty programs	(298)		(258)
Other	16		47
Total other income	65		108
Other expense:
Employee costs	451		402
Professional fees	186		210
Marketing and business development	131		116
Information processing	166		145
Other	185		166
Total other expense	1,119		1,039
Earnings before provision for income taxes	790		1,233
Provision for income taxes (Note 12)	189		301
Net earnings	$	601	$	932
Net earnings available to common stockholders	$	590	$	922

Earnings per share
Basic	$	1.36	$	1.79
Diluted	$	1.35	$	1.77

____________________________________________________________________________________________


($ in millions)	At March 31, 2023		At December 31, 2022
Assets
Cash and equivalents	$	15,303	$	10,294
Debt securities (Note 3)	4,008		4,879
Loan receivables: (Notes 4 and 5)
Unsecuritized loans held for investment	72,079		72,638
Restricted loans of consolidated securitization entities	19,050		19,832
Total loan receivables	91,129		92,470
Less: Allowance for credit losses	(9,517)		(9,527)
Loan receivables, net	81,612		82,943

Goodwill	1,105		1,105
Intangible assets, net (Note 6)	1,297		1,287
Other assets	4,528		4,056
Total assets	$	107,853	$	104,564

Liabilities and Equity
Deposits: (Note 7)
Interest-bearing deposit accounts	$	74,008	$	71,336
Non-interest-bearing deposit accounts	417		399
Total deposits	74,425		71,735
Borrowings: (Notes 5 and 8)
Borrowings of consolidated securitization entities	6,228		6,227

Senior and subordinated unsecured notes	8,706		7,964
Total borrowings	14,934		14,191
Accrued expenses and other liabilities	5,301		5,765
Total liabilities	$	94,660	$	91,691

Equity:
Preferred stock, par share value $0.001 per share; 750,000 shares authorized; 750,000 shares issued and outstanding at both March 31, 2023 and December 31, 2022 and aggregate liquidation preference of $750 at both March 31, 2023 and December 31, 2022	$	734	$	734
Common Stock, par share value $0.001 per share; 4,000,000,000 shares authorized; 833,984,684 shares issued at both March 31, 2023 and December 31, 2022; 428,447,828 and 438,216,755 shares outstanding at March 31, 2023 and December 31, 2022, respectively	1		1
Additional paid-in capital	9,705		9,718
Retained earnings	17,369		16,716
Accumulated other comprehensive income (loss):
Debt securities	(69)		(93)
Currency translation adjustments	(39)		(38)
Employee benefit plans	6		6
Treasury stock, at cost; 405,536,856 and 395,767,929 shares at March 31, 2023 and December 31, 2022, respectively	(14,514)		(14,171)

Total equity	13,193		12,873
Total liabilities and equity	$	107,853	$	104,564


	Preferred Stock			Common Stock
($ in millions, shares in thousands)	Shares Issued	Amount		Shares Issued	Amount		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Treasury Stock		Total Equity

Balance at January 1, 2022	750	$	734	833,985	$	1	$	9,669	$	14,245	$	(69)	$	(10,925)	$	13,655



Net earnings	—	—		—	—		—		932		—		—		932
Other comprehensive income	—	—		—	—		—		—		(52)		—		(52)

Purchases of treasury stock	—	—		—	—		—		—		—		(968)		(968)
Stock-based compensation	—	—		—	—		(26)		(50)		—		51		(25)
Dividends - preferred stock ($14.06 per share)	—	—		—	—		—		(10)		—		—		(10)
Dividends - common stock ($0.22 per share)	—	—		—	—		—		(114)		—		—		(114)

Balance at March 31, 2022	750	$	734	833,985	$	1	$	9,643	$	15,003	$	(121)	$	(11,842)	$	13,418


	Preferred Stock			Common Stock
($ in millions, shares in thousands)	Shares Issued	Amount		Shares Issued	Amount		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Treasury Stock		Total Equity
Balance at January 1, 2023	750	$	734	833,985	$	1	$	9,718	$	16,716	$	(125)	$	(14,171)	$	12,873
Cumulative effect of change in accounting principle									222						222
Adjusted balance, beginning of period	750	734		833,985	1		9,718		16,938		(125)		(14,171)		13,095
Net earnings				—	—		—		601		—		—		601
Other comprehensive income	—	—		—	—		—		—		23				23

Purchases of treasury stock	—	—		—	—		—		—				(404)		(404)
Stock-based compensation	—	—		—	—		(13)		(59)				61		(11)
Dividends - preferred stock ($14.06 per share)									(11)						(11)
Dividends - common stock ($0.23 per share)	—	—		—	—		—		(100)		—		—		(100)

Balance at March 31, 2023	750	$	734	833,985	$	1	$	9,705	$	17,369	$	(102)	$	(14,514)	$	13,193


	Three months ended March 31,
($ in millions)	2023		2022
Cash flows - operating activities
Net earnings	$	601	$	932
Adjustments to reconcile net earnings to cash provided from operating activities
Provision for credit losses	1,290		521
Deferred income taxes	(88)		49
Depreciation and amortization	111		107
(Increase) decrease in interest and fees receivable	(34)		65
(Increase) decrease in other assets	19		(12)
Increase (decrease) in accrued expenses and other liabilities	(177)		(413)
All other operating activities	164		147
Cash provided from (used for) operating activities	1,886		1,396

Cash flows - investing activities
Maturity and sales of debt securities	1,458		1,998
Purchases of debt securities	(391)		(1,478)



Net (increase) decrease in loan receivables, including held for sale	(234)		1,415
All other investing activities	(141)		(117)
Cash provided from (used for) investing activities	692		1,818

Cash flows - financing activities
Borrowings of consolidated securitization entities
Proceeds from issuance of securitized debt	250		—
Maturities and repayment of securitized debt	(250)		(1,150)
Senior and subordinated unsecured notes
Proceeds from issuance of senior and subordinated unsecured notes	740		—





Dividends paid on preferred stock	(11)		(10)
Net increase (decrease) in deposits	2,720		1,302
Purchases of treasury stock	(404)		(968)
Dividends paid on common stock	(100)		(114)
All other financing activities	(33)		(36)
Cash provided from (used for) financing activities	2,912		(976)

Increase (decrease) in cash and equivalents, including restricted amounts	5,490		2,238
Cash and equivalents, including restricted amounts, at beginning of period	10,430		8,686
Cash and equivalents at end of period:
Cash and equivalents	15,303		10,541
Restricted cash and equivalents included in other assets	617		383
Total cash and equivalents, including restricted amounts, at end of period	$	15,920	$	10,924

We borrow money from a variety of depositors and institutions in order to provide loans to our customers. Changes in market interest rates cause our net interest income to increase or decrease, as some of our assets and liabilities carry interest rates that fluctuate with market benchmarks. The interest rate benchmark for our floating rate assets is generally the prime rate, and the interest rate benchmark for our floating rate liabilities is generally either the Secured Overnight Financing Rate ("SOFR"), the London Interbank Offered Rate (“LIBOR”), U.S. Treasury bills, or the federal funds rate. The prime rate and the SOFR, LIBOR, U.S. Treasury bills or federal funds rate could reset at different times or could diverge, leading to mismatches in the interest rates on our floating rate assets and floating rate liabilities. We are in the process of amending existing asset and liability contracts that reference LIBOR to reference a new benchmark rate. The new benchmark rates include, but are not limited to, SOFR, federal funds and U.S. Treasury bills. We expect the transition from the LIBOR benchmark to be completed in 2023 and do not expect it to have a material impact to our company.


Delaware						51-0483352
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)


777 Long Ridge Road
Stamford,	Connecticut	06902
(Address of principal executive offices)		(Zip Code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, par value $0.001 per share	SYF	New York Stock Exchange
Depositary Shares Each Representing a 1/40th Interest in a Share of 5.625% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A	SYFPrA	New York Stock Exchange


Large Accelerated Filer	☒	Accelerated Filer	☐

Non-Accelerated Filer	☐	Smaller Reporting Company	☐

		Emerging Growth Company	☐


PART I - FINANCIAL INFORMATION			Page
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			6

Item 1. Financial Statements:
Condensed Consolidated Statements of Earnings – Three months ended March 31, 2023 and 2022			29
Condensed Consolidated Statements of Comprehensive Income – Three months ended March 31, 2023 and 2022			30
Condensed Consolidated Statements of Financial Position – March 31, 2023 and December 31, 2022			31
Condensed Consolidated Statements of Changes in Equity – Three months ended March 31, 2023 and 2022			32
Condensed Consolidated Statements of Cash Flows – Three months ended March 31 2023 and 2022			33
Notes to Condensed Consolidated Financial Statements			34
Item 3. Quantitative and Qualitative Disclosures About Market Risk			55
Item 4. Controls and Procedures			55

PART II - OTHER INFORMATION
Item 1. Legal Proceedings			56
Item 1A. Risk Factors			56
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			56
Item 3. Defaults Upon Senior Securities			56
Item 4. Mine Safety Disclosures			56
Item 5. Other Information			56
Item 6. Exhibits			57
Signatures			58


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


			Promotional Offer
Credit Product	Standard Terms Only		Deferred Interest		Other Promotional		Total
Credit cards	58.3	%	19.8	%	16.4	%	94.5	%
Commercial credit products	1.8		—		—		1.8
Consumer installment loans	0.1		0.1		3.4		3.6
Other	0.1		—		—		0.1
Total	60.3	%	19.9	%	19.8	%	100.0	%


($ in millions)	Loan Receivables Outstanding		% of Total Loan Receivables Outstanding
State
Texas	$	9,957	10.9	%
California	$	9,476	10.4	%
Florida	$	8,482	9.3	%
New York	$	4,495	4.9	%
North Carolina	$	3,754	4.1	%


($ in millions)	3 Months or Less		Over 3 Months but within 6 Months		Over 6 Months but within 12 Months		Over 12 Months		Total
U.S. deposits (less than FDIC insurance limit)(1)(2)	$	31,670	$	3,266	$	9,858	$	14,620	$	59,414
U.S. deposits (in excess of FDIC insurance limit)(2)
Direct deposits:
Certificates of deposit (including IRA certificates of deposit)	1,203		1,061		3,068		2,728		8,060
Savings, money market, and demand accounts	6,951		—		—		—		6,951


Total	$	39,824	$	4,327	$	12,926	$	17,348	$	74,425


($ in millions)	Less Than One Year		One Year Through Three Years		Four Years Through Five Years		After Five Years		Total
Scheduled maturities of long-term borrowings—owed to securitization investors:
SYNCT(1)	$	1,457	$	1,550	$	—	$	—	$	3,007
SFT	—		1,550		—		—		1,550
SYNIT(1)	—		1,675		—		—		1,675
Total long-term borrowings—owed to securitization investors	$	1,457	$	4,775	$	—	$	—	$	6,232


	Note Principal Balance ($ in millions)		# of Series Outstanding	Three-Month Rolling Average Excess Spread(1)
SYNCT	$	3,007	5	~ 15.1% to 16.3%
SFT	$	1,550	6	15.0	%
SYNIT	$	1,675	1	19.1	%


Issuance Date	Interest Rate(1)	Maturity	Principal Amount Outstanding(2)
($ in millions)
Fixed rate senior unsecured notes:
Synchrony Financial
August 2014	4.250%	August 2024	1,250
July 2015	4.500%	July 2025	1,000
August 2016	3.700%	August 2026	500
December 2017	3.950%	December 2027	1,000
March 2019	4.375%	March 2024	600
March 2019	5.150%	March 2029	650
October 2021	2.875%	October 2031	750
June 2022	4.875%	June 2025	750
Synchrony Bank
August 2022	5.400%	August 2025	900
August 2022	5.625%	August 2027	600

Fixed rate subordinated unsecured notes:
Synchrony Financial
February 2023	7.250%	February 2033	750
Total fixed rate senior and subordinated unsecured notes			$	8,750


	S&P	Fitch Ratings
Synchrony Financial
Senior unsecured debt	BBB-	BBB-
Subordinated unsecured debt	BB+	BB+
Preferred stock	BB-	B+
Outlook for Synchrony Financial	Stable	Stable
Synchrony Bank
Senior unsecured debt	BBB	BBB-
Outlook for Synchrony Bank	Stable	Stable


Common Stock Cash Dividends Declared	Month of Payment	Amount per Common Share		Amount
($ in millions, except per share data)
Three months ended March 31, 2023	February 2023	$	0.23	$	100


Total dividends declared		$	0.23	$	100


	Basel III
	At March 31, 2023				At December 31, 2022
($ in millions)	Amount		Ratio(1)		Amount		Ratio(1)
Total risk-based capital	$	14,180	15.4	%	$	13,713	15.0	%
Tier 1 risk-based capital	$	12,207	13.3	%	$	12,493	13.6	%
Tier 1 leverage	$	12,207	11.6	%	$	12,493	12.3	%
Common equity Tier 1 capital	$	11,473	12.5	%	$	11,759	12.8	%
Risk-weighted assets	$	91,873			$	91,596


	At March 31, 2023				At December 31, 2022				Minimum to be Well-Capitalized under Prompt Corrective Action Provisions
($ in millions)	Amount		Ratio		Amount		Ratio		Ratio
Total risk-based capital	$	13,074	15.2	%	$	13,313	15.6	%	10.0%
Tier 1 risk-based capital	$	11,921	13.9	%	$	12,174	14.2	%	8.0%
Tier 1 leverage	$	11,921	12.2	%	$	12,174	12.8	%	5.0%
Common equity Tier 1 capital	$	11,921	13.9	%	$	12,174	14.2	%	6.5%


Preferred Stock Cash Dividends Declared	Month of Payment	Amount per Preferred Share		Amount
($ in millions, except per share data)
Three months ended March 31, 2023	February 2023	$	14.06	$	11


Total dividends declared		$	14.06	$	11


Common Shares Repurchased Under Publicly Announced Programs	Total Number of Shares Purchased	Dollar Value of Shares Purchased
($ and shares in millions)
Three months ended March 31, 2023	11.3	$	400


Total	11.3	$	400


	March 31, 2023								December 31, 2022
			Gross		Gross						Gross		Gross
	Amortized		unrealized		unrealized		Estimated		Amortized		unrealized		unrealized		Estimated
($ in millions)	cost		gains		losses		fair value		cost		gains		losses		fair value
U.S. government and federal agency	$	3,078	$	—	$	(32)	$	3,046	$	3,917	$	—	$	(53)	$	3,864
State and municipal	10		—		—		10		10		—		—		10
Residential mortgage-backed(a)	447		—		(42)		405		467		—		(49)		418
Asset-backed(b)	556		—		(17)		539		599		—		(19)		580
Other	8		—		—		8		8		—		(1)		7

Total	$	4,099	$	—	$	(91)	$	4,008	$	5,001	$	—	$	(122)	$	4,879


	In loss position for
	Less than 12 months				12 months or more
			Gross				Gross
	Estimated		unrealized		Estimated		unrealized
($ in millions)	fair value		losses		fair value		losses
At March 31, 2023
U.S. government and federal agency	$	1,326	$	(5)	$	1,277	$	(27)
State and municipal	1		—		9		—
Residential mortgage-backed	32		(1)		372		(41)
Asset-backed	145		—		293		(17)
Other	8		—		—		—
Total	$	1,512	$	(6)	$	1,951	$	(85)

At December 31, 2022
U.S. government and federal agency	$	3,032	$	(30)	$	638	$	(23)
State and municipal	5		—		5		—
Residential mortgage-backed	316		(31)		101		(18)
Asset-backed	230		—		348		(19)
Other	7		(1)		—		—
Total	$	3,590	$	(62)	$	1,092	$	(60)


	Amortized		Estimated		Weighted
At March 31, 2023 ($ in millions)	cost		fair value		Average yield (a)
Due
Within one year	$	3,253	$	3,221	2.8	%
After one year through five years	$	412	$	394	2.0	%
After five years through ten years	$	224	$	208	1.8	%
After ten years	$	210	$	185	1.8	%


($ in millions)	Balance at January 1, 2023		Impact of ASU 2022-02 Adoption		Post-Adoption Balance at January 1, 2023		Provision charged to operations		Gross charge-offs		Recoveries		Balance at March 31, 2023
Credit cards	$	9,225	$	(294)	$	8,931	$	1,159	$	(1,162)	$	224	$	9,152
Consumer installment loans	208		1		209		85		(44)		5		255
Commercial credit products	87		(1)		85		48		(31)		2		104
Other	7		—		8		(2)		—		—		6
Total	$	9,527	$	(294)	$	9,233	$	1,290	$	(1,237)	$	231	$	9,517


($ in millions)	Balance at January 1, 2022		Provision charged to operations		Gross charge-offs		Recoveries		Balance at March 31, 2022
Credit cards	$	8,512	$	482	$	(719)	$	189	$	8,464
Consumer installment loans	115		17		(21)		4		115
Commercial credit products	59		22		(12)		1		70
Other	2		—		—		—		2
Total	$	8,688	$	521	$	(752)	$	194	$	8,651


At March 31, 2023 ($ in millions)	30-89 days delinquent			90 or more days delinquent			Total past due			90 or more days delinquent and accruing			Total non-accruing
Credit cards	$	1,663		$	1,650		$	3,313		$	1,650		$	—
Consumer installment loans	55			15			70			—			15
Commercial credit products	51			40			91			40			—

Total delinquent loans	$	1,769		$	1,705		$	3,474		$	1,690		$	15
Percentage of total loan receivables	1.9		%	1.9		%	3.8		%	1.9		%	—		%


At December 31, 2022 ($ in millions)	30-89 days delinquent			90 or more days delinquent			Total past due			90 or more days delinquent and accruing			Total non-accruing
Credit cards	$	1,710		$	1,516		$	3,226		$	1,516		$	—
Consumer installment loans	61			14			75			—			14
Commercial credit products	44			32			76			32			—

Total delinquent loans	$	1,815		$	1,562		$	3,377		$	1,548		$	14
Percentage of total loan receivables	2.0		%	1.7		%	3.7		%	1.7		%	—		%


Three months ended March 31, 2023 ($ in millions)	Amount		% of Loan Receivables
Long-term modifications
Credit cards	$	377	0.4	%
Consumer installment loans	—		—	%
Commercial credit products	1		0.1	%
Short-term modifications
Credit cards	139		0.2	%
Consumer installment loans	—		—	%
Commercial credit products	—		—	%
Total	$	517	0.6	%


	Amortized cost basis
At March 31, 2023 ($ in millions)	Current			30-89 days delinquent			90 or more days delinquent			Total past due(a)
Long-term modifications
Credit cards	$	209		$	89		$	65		$	154
Consumer installment loans	—			—			—			—
Commercial credit products	—			—			1			1
Short-term modifications
Credit cards	28			18			44			62
Consumer installment loans	—			—			—			—
Commercial credit products	—			—			—			—

Total delinquent modified loans	$	237		$	107		$	110		$	217
Percentage of total loan receivables	0.3		%	0.1		%	0.1		%	0.2		%


Three months ended March 31 ($ in millions, accounts in thousands)	Accounts defaulted	Loans defaulted
Credit cards	2	$	7
Consumer installment loans	—	—
Commercial credit products	—	—

Total	2	$	7


Three months ended March 31, 2022 ($ in millions)
Credit cards	$	223
Consumer installment loans	—
Commercial credit products	1

Total	$	224


At December 31, 2022 ($ in millions)	Total recorded investment		Related allowance		Net recorded investment		Unpaid principal balance
Credit cards	$	1,355	$	(600)	$	755	$	1,206
Consumer installment loans	—		—		—		—
Commercial credit products	4		(2)		2		4
Total	$	1,359	$	(602)	$	757	$	1,210


Three months ended March 31, 2022 ($ in millions)	Interest income recognized during period when loans were modified		Interest income that would have been recorded with original terms		Average recorded investment
Credit cards	$	9	$	77	$	1,183
Consumer installment loans	—		—		—
Commercial credit products	—		—		3
Total	$	9	$	77	$	1,186


	March 31, 2023						December 31, 2022						March 31, 2022
	651 or		591 to		590 or		651 or		591 to		590 or		651 or		591 to		590 or
	higher		650		less		higher		650		less		higher		650		less
Credit cards	73	%	19	%	8	%	74	%	19	%	7	%	76	%	18	%	6	%
Consumer installment loans	76	%	17	%	7	%	77	%	17	%	6	%	79	%	17	%	4	%
Commercial credit products	86	%	7	%	7	%	88	%	6	%	6	%	92	%	5	%	3	%


($ in millions)	2023		2024		2025		2026		2027		Thereafter
Deposits	$	13,153	$	19,966	$	2,517	$	948	$	2,494	$	708


At March 31, 2023 ($ in millions)	Level 1		Level 2		Level 3		Total(a)
Assets
Debt securities
U.S. government and federal agency	$	—	$	3,046	$	—	$	3,046
State and municipal	—		—		10		10
Residential mortgage-backed	—		405		—		405
Asset-backed	—		539		—		539
Other	—		—		8		8
Other(b)	14		—		12		26
Total	$	14	$	3,990	$	30	$	4,034

Liabilities
Other(c)	—		—		7		7
Total	$	—	$	—	$	7	$	7

At December 31, 2022 ($ in millions)
Assets
Debt securities
U.S. government and federal agency	$	—	$	3,864	$	—	$	3,864
State and municipal	—		—		10		10
Residential mortgage-backed	—		418		—		418
Asset-backed	—		580		—		580
Other	—		—		7		7
Other(b)	14		—		13		27
Total	$	14	$	4,862	$	30	$	4,906

Liabilities
Other(c)	—		—		$	7	$	7

Total	$	—	$	—	$	7	$	7


	Carrying		Corresponding fair value amount
At March 31, 2023 ($ in millions)	value		Total		Level 1		Level 2		Level 3
Financial Assets
Financial assets for which carrying values equal or approximate fair value:
Cash and equivalents(a)	$	15,303	$	15,303	$	15,303	$	—	$	—
Other assets(a)(b)	$	617	$	617	$	617	$	—	$	—
Financial assets carried at other than fair value:
Loan receivables, net(c)	$	81,600	$	93,265	$	—	$	—	$	93,265


Financial Liabilities
Financial liabilities carried at other than fair value:
Deposits	$	74,425	$	73,872	$	—	$	73,872	$	—
Borrowings of consolidated securitization entities	$	6,228	$	6,167	$	—	$	2,344	$	3,823

Senior and subordinated unsecured notes	$	8,706	$	7,836	$	—	$	7,836	$	—

	Carrying		Corresponding fair value amount
At December 31, 2022 ($ in millions)	value		Total		Level 1		Level 2		Level 3
Financial Assets
Financial assets for which carrying values equal or approximate fair value:
Cash and equivalents(a)	$	10,294	$	10,294	$	10,294	$	—	$	—
Other assets(a)(b)	$	136	$	136	$	136	$	—	$	—
Financial assets carried at other than fair value:
Loan receivables, net(c)	$	82,930	$	94,339	$	—	$	—	$	94,339


Financial Liabilities
Financial liabilities carried at other than fair value:
Deposits	$	71,735	$	70,685	$	—	$	70,685	$	—
Borrowings of consolidated securitization entities	$	6,227	$	6,127	$	—	$	2,327	$	3,800

Senior and subordinated unsecured notes	$	7,964	$	7,530	$	—	$	7,530	$	—



At or for the three months ended March 31 ($ in millions)	2023		2022
Carrying value(a)	$	250	$	242
Upward adjustments(b)	—		7
Downward adjustments(b)	—		(2)