Synchrony Financial at Barclays Global Financial Services Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Terry Ma - Barclays Services Corp - Analyst : Great, let's jump right into it. Maybe we'll start off with an update on the third quarter. How's the consumer spend been trending so far this quarter? You had noted improving momentum in the second quarter on purchase volumes. Has that persisted and what sales platforms are you seeing the best growth in right now?

Question: Terry Ma - Barclays Services Corp - Analyst : Got it. That's helpful color. So we kind of take a step back. How would you characterize the health of the consumer and any noticeable differences, that you can maybe call out between the lower and higher income consumer?

Question: Terry Ma - Barclays Services Corp - Analyst : Got it. Maybe just briefly update, you know any trends you're seeing. And consumers with student loans.

Question: Terry Ma - Barclays Services Corp - Analyst : That's encouraging. Maybe turn to credit you obviously published a monthly update this morning.

Question: Terry Ma - Barclays Services Corp - Analyst : Yeah, as usual.

Question: Terry Ma - Barclays Services Corp - Analyst : Yeah, thank you. Delinquencies, continue to trend down year over year. I think it's nine consecutive months now charge offs, obviously following that. Where do we stand on credit and how much longer can we see the delinquency rate improve year over year?

Question: Terry Ma - Barclays Services Corp - Analyst : Got it. And the guide for this year's 5.6% to 5.8% charge off, which is well within your target underwriting range of [5.5%] to 6%. So obviously the guy looks good to me. How do you feel about that and what does that mean for the reserve rate going forward? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 10, 2025 / 11:30AM, SYF.N - Synchrony Financial at Barclays Global Financial Services Conference

Question: Terry Ma - Barclays Services Corp - Analyst : Got it. That's helpful. So everything you just laid out with credit sounds pretty encouraging to me. You mentioned, you may open up the aperture a little bit, maybe just expand on how you're thinking about underwriting. It seems like you laid the groundwork for growth for the Amazon renewal and obviously the Walmart partnership, the launch is expected to occur later this year. Can you maybe just walk through your thinking on kind of underwriting and loan growth?

Question: Terry Ma - Barclays Services Corp - Analyst : Got it. Maybe just deeper a little bit on Walmart, obviously, not the first time you guys have issued a Walmart card. I mean, you talked a little bit about what you're doing differently this time. I think the launch is expected to occur later this year. First time you had the Walmart portfolio, it was $10 billion. How should investors think about the growth and sizing of the program over time along with any kind of financial metrics that you can give us?

Question: Terry Ma - Barclays Services Corp - Analyst : Got it. That's helpful. Maybe one follow-up. You mentioned the revenue stream or revenue yield is higher. What's actually driving that this time around?

Question: Terry Ma - Barclays Services Corp - Analyst : Got it. That makes sense. Maybe just touch on the competitive environment for partnerships. Can you remind us of some of your major partnerships, how long they're tied up for? And then where are some of the areas you're seeing additional opportunities right now? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 10, 2025 / 11:30AM, SYF.N - Synchrony Financial at Barclays Global Financial Services Conference

Question: Terry Ma - Barclays Services Corp - Analyst : Got it. Maybe you shift to loan growth. You touched on it a little bit already. You had revised your full year guide from low single digits to flat year over year. Obviously, you have Walmart coming online, more of a contribution in '26, but still some -- the guide might strike some as being slightly conservative. What factors should we be mindful of regarding the guide?

Question: Terry Ma - Barclays Services Corp - Analyst : Got it. And when we think about your long-term guide, you had put out a 7% to 10% receivables growth guide. What are some of the puts and takes there? And any kind of time frame to kind of get back there?

Question: Terry Ma - Barclays Services Corp - Analyst : Okay. That's helpful color. Maybe let's switch gears. You guided second half NIM to be approximately 15.6% that compares to a first half NIM of sub-15%. You had indicated some of the drivers were of improving margins were seasonality, growing PPPC impact, CD book repricing. I guess first question is how do you feel about that second half NIM guide today? And then maybe just any color you can give us on how to kind of quantify how much benefit each of those components actually drives the NIM? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 10, 2025 / 11:30AM, SYF.N - Synchrony Financial at Barclays Global Financial Services Conference

Question: Terry Ma - Barclays Services Corp - Analyst : Got it. As we look forward to '26, any reason why NIM can't continue to expand?

Question: Terry Ma - Barclays Services Corp - Analyst : Okay. Fair enough. So you called out some modifications at the PPPCs on the last earnings call. I think in aggregate had a $50 million negative impact to revenue. Maybe just discuss why you wrote that back? And then how are other PPPC discussions with partners progressing? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 10, 2025 / 11:30AM, SYF.N - Synchrony Financial at Barclays Global Financial Services Conference

Question: Terry Ma - Barclays Services Corp - Analyst : Got it. That's helpful. Just moving to capital. Your CET1 ratio is about 13.6% improved year over year by about 100 basis points. How are you thinking about capital allocation going forward, particularly as you start to grow the business again?

Question: Terry Ma - Barclays Services Corp - Analyst : Got it. Helpful. There's about two or three minutes left. I'll open it up to the audience for any Q&A. One question here. Unidentified Participant There is a bit of a disconnect right now between the unemployment situation and credit quality, certainly for you and also your peers, right? Employment is feeling weak and yet when it comes to credit metrics, you're killing it. How do you account for that disconnect?

Question: Terry Ma - Barclays Services Corp - Analyst : Okay. I think we're pretty much on time. And I'll wrap it up there.