Synchrony Financial - FORM 8-K - EX-99.2 - EXHIBIT 99.2

Attached files

file	filename
8-K - 8-K - Synchrony Financial	a8-k1q15earnings.htm
EX-99.1 - EXHIBIT 99.1 - Synchrony Financial	earningsrelease1q15.htm
EX-99.4 - EXHIBIT 99.4 - Synchrony Financial	non-gaapmeasures33115.htm
EX-99.3 - EXHIBIT 99.3 - Synchrony Financial	a1q15earningspresentatio.htm

Exhibit 99.2



SYNCHRONY FINANCIAL
FINANCIAL SUMMARY
(unaudited, in millions, except per share statistics)
	Quarter Ended
	Mar 31, 2015			Dec 31, 2014			Sep 30, 2014			Jun 30, 2014			Mar 31, 2014			1Q'15 vs. 1Q'14
EARNINGS
Net interest income	$	2,875		$	2,978		$	2,879		$	2,720		$	2,743		$	132		4.8	%
Retailer share arrangements	(660		)	(698		)	(693		)	(590		)	(594		)	(66		)	11.1	%
Net interest income, after retailer share arrangements	2,215			2,280			2,186			2,130			2,149			66			3.1	%
Provision for loan losses	687			797			675			681			764			(77		)	(10.1	)%
Net interest income, after retailer share arrangements and provision for loan losses	1,528			1,483			1,511			1,449			1,385			143			10.3	%
Other income	101			162			96			112			115			(14		)	(12.2	)%
Other expense	746			792			728			797			610			136			22.3	%
Earnings before provision for income taxes	883			853			879			764			890			(7		)	(0.8	)%
Provision for income taxes	331			322			331			292			332			(1		)	(0.3	)%
Net earnings	$	552		$	531		$	548		$	472		$	558		$	(6	)	(1.1	)%
Net earnings attributable to common stockholders	$	552		$	531		$	548		$	472		$	558		$	(6	)	(1.1	)%

COMMON SHARE STATISTICS
Basic EPS	$	0.66		$	0.64		$	0.70		$	0.67		$	0.79		$	(0.13	)	(16.5	)%
Diluted EPS	$	0.66		$	0.64		$	0.70		$	0.67		$	0.79		$	(0.13	)	(16.5	)%
Common stock price	$	30.35		$	29.75		$	24.55		n/a			n/a			$	30.35		n/a
Book value per share	$	13.24		$	12.57		$	11.92		$	9.06		$	8.57		$	4.67		54.5	%
Tangible book value per share⁽¹⁾	$	11.43		$	10.81		$	10.25		$	7.06		$	6.56		$	4.87		74.2	%

Beginning common shares outstanding	833.8			833.8			705.3			705.3			705.3			128.5			18.2	%
Issuance of common shares through initial public offering	—			—			128.5			—			—			—			NM
Shares repurchased	—			—			—			—			—			—			NM
Ending common shares outstanding	833.8			833.8			833.8			705.3			705.3			128.5			18.2	%

Weighted average common shares outstanding	833.8			833.8			781.8			705.3			705.3			128.5			18.2	%
Weighted average common shares outstanding (fully diluted)	835.0			834.3			781.9			705.3			705.3			129.7			18.4	%

(1) Tangible Common Equity ("TCE") is a non-GAAP measure. For corresponding reconciliation of TCE to a GAAP financial measure, see Reconciliation of Non-GAAP Measures and Calculations of Regulatory Measures.



SYNCHRONY FINANCIAL
SELECTED METRICS
(unaudited, $ in millions, except account data)
	Quarter Ended
	Mar 31, 2015			Dec 31, 2014			Sep 30, 2014			Jun 30, 2014			Mar 31, 2014			1Q'15 vs. 1Q'14
PERFORMANCE METRICS
Return on assets⁽¹⁾	3.0		%	2.7		%	3.2		%	3.1		%	3.9		%				(0.9	)%
Return on equity⁽²⁾	20.8		%	20.2		%	26.8		%	29.9		%	35.3		%				(14.5	)%
Return on tangible common equity⁽³⁾	24.1		%	23.4		%	32.4		%	38.5		%	44.2		%				(20.1	)%
Net interest margin⁽⁴⁾	15.79		%	15.60		%	17.11		%	17.84		%	18.83		%				(3.04	)%
Efficiency ratio⁽⁵⁾	32.2		%	32.4		%	31.9		%	35.5		%	26.9		%				5.3	%
Other expense as a % of average loan receivables, including held for sale	5.06		%	5.16		%	5.09		%	5.77		%	4.51		%				0.55	%
Effective income tax rate	37.5		%	37.7		%	37.7		%	38.2		%	37.3		%				0.2	%

CREDIT QUALITY METRICS
Net charge-offs as a % of average loan receivables, including held for sale	4.53		%	4.32		%	4.05		%	4.88		%	4.86		%				(0.33	)%
30+ days past due as a % of period-end loan receivables	3.79		%	4.14		%	4.26		%	3.82		%	4.09		%				(0.30	)%
90+ days past due as a % of period-end loan receivables	1.81		%	1.90		%	1.85		%	1.65		%	1.93		%				(0.12	)%
Net charge-offs	$	668		$	663		$	579		$	673		$	658		$	10		1.5	%
Loan receivables delinquent over 30 days	$	2,209		$	2,536		$	2,416		$	2,097		$	2,220		$	(11	)	(0.5	)%
Loan receivables delinquent over 90 days	$	1,056		$	1,162		$	1,051		$	908		$	1,046		$	10		1.0	%

Allowance for loan losses (period-end)	$	3,255		$	3,236		$	3,102		$	3,006		$	2,998		$	257		8.6	%
Allowance coverage ratio⁽⁶⁾	5.59		%	5.28		%	5.46		%	5.48		%	5.52		%				0.07	%

BUSINESS METRICS
Purchase volume⁽⁷⁾	$	23,139		$	30,081		$	26,004		$	25,978		$	21,086		$	2,053		9.7	%
Period-end loan receivables	$	58,248		$	61,286		$	56,767		$	54,873		$	54,285		$	3,963		7.3	%
Credit cards	$	55,866		$	58,880		$	54,263		$	52,406		$	52,008		$	3,858		7.4	%
Consumer installment loans	$	1,062		$	1,063		$	1,081		$	1,047		$	963		$	99		10.3	%
Commercial credit products	$	1,295		$	1,320		$	1,404		$	1,405		$	1,299		$	(4	)	(0.3	)%
Other	$	25		$	23		$	19		$	15		$	15		$	10		66.7	%
Average loan receivables, including held for sale	$	59,775		$	59,547		$	57,391		$	55,363		$	55,495		$	4,280		7.7	%
Period-end active accounts (in thousands)⁽⁸⁾	59,761			64,286			60,489			59,248			57,349			2,412			4.2	%
Average active accounts (in thousands)⁽⁸⁾	61,604			61,667			59,907			58,386			59,342			2,262			3.8	%

LIQUIDITY
Liquid assets
Cash and equivalents	$	11,218		$	11,828		$	14,808		$	6,782		$	5,331		$	5,887		110.4	%
Total liquid assets	$	13,813		$	12,942		$	14,077		$	6,119		$	4,806		$	9,007		187.4	%
Undrawn credit facilities
Undrawn committed securitization financings	$	6,600		$	6,100		$	5,650		$	5,650		$	450		$	6,150		NM
Total liquid assets and undrawn credit facilities	$	20,413		$	19,042		$	19,727		$	11,769		$	5,256		$	15,157		NM
Liquid assets % of total assets	18.99		%	17.09		%	19.16		%	9.69		%	8.11		%				10.88	%
Liquid assets including undrawn committed securitization financings % of total assets	28.07		%	25.15		%	26.85		%	18.63		%	8.87		%				19.20	%

(1) Return on assets represents net earnings as a percentage of average total assets.
(2) Return on equity represents net earnings as a percentage of average total equity.
(3) Return on tangible common equity represents net earnings as a percentage of average tangible common equity. Tangible Common Equity ("TCE") is a non-GAAP measure. For corresponding reconciliation of TCE to a GAAP financial measure, see Reconciliation of Non-GAAP Measures and Calculations of Regulatory Measures.
(4) Net interest margin represents net interest income divided by average interest-earning assets.
(5) Efficiency ratio represents (i) other expense, divided by (ii) net interest income, after retailer share arrangements, plus other income.
(6) Allowance coverage ratio represents allowance for loan losses divided by total period-end loan receivables.
(7) Purchase volume, or net credit sales, represents the aggregate amount of charges incurred on credit cards or other credit product accounts less returns during the period.
(8) Active accounts represent credit card or installment loan accounts on which there has been a purchase, payment or outstanding balance in the current month.



SYNCHRONY FINANCIAL
STATEMENTS OF EARNINGS
(unaudited, $ in millions)
	Quarter Ended
	Mar 31, 2015			Dec 31, 2014			Sep 30, 2014			Jun 30, 2014			Mar 31, 2014			1Q'15 vs. 1Q'14
Interest income:
Interest and fees on loans	$	3,140		$	3,252		$	3,116		$	2,920		$	2,928		$	212		7.2	%
Interest on investment securities	10			8			7			6			5			5			100.0	%
Total interest income	3,150			3,260			3,123			2,926			2,933			217			7.4	%

Interest expense:
Interest on deposits	137			139			126			109			96			41			42.7	%
Interest on borrowings of consolidated securitization entities	52			57			57			54			47			5			10.6	%
Interest on third-party debt	82			78			46			—			—			82			NM
Interest on related party debt	4			8			15			43			47			(43		)	(91.5	)%
Total interest expense	275			282			244			206			190			85			44.7	%

Net interest income	2,875			2,978			2,879			2,720			2,743			132			4.8	%

Retailer share arrangements	(660		)	(698		)	(693		)	(590		)	(594		)	(66		)	11.1	%
Net interest income, after retailer share arrangements	2,215			2,280			2,186			2,130			2,149			66			3.1	%

Provision for loan losses	687			797			675			681			764			(77		)	(10.1	)%
Net interest income, after retailer share arrangements and provision for loan losses	1,528			1,483			1,511			1,449			1,385			143			10.3	%

Other income:
Interchange revenue	100			120			101			92			76			24			31.6	%
Debt cancellation fees	65			67			68			70			70			(5		)	(7.1	)%
Loyalty programs	(78		)	(91		)	(84		)	(63		)	(43		)	(35		)	81.4	%
Other	14			66			11			13			12			2			16.7	%
Total other income	101			162			96			112			115			(14		)	(12.2	)%

Other expense:
Employee costs	239			227			239			207			193			46			23.8	%
Professional fees⁽¹⁾	162			139			149			145			130			32			24.6	%
Marketing and business development	82			165			115			97			83			(1		)	(1.2	)%
Information processing	63			60			47			53			52			11			21.2	%
Other⁽¹⁾	200			201			178			295			152			48			31.6	%
Total other expense	746			792			728			797			610			136			22.3	%

Earnings before provision for income taxes	883			853			879			764			890			(7		)	(0.8	)%
Provision for income taxes	331			322			331			292			332			(1		)	(0.3	)%
Net earnings attributable to common shareholders	$	552		$	531		$	548		$	472		$	558		$	(6	)	(1.1	)%

(1) We have reclassified certain amounts within Professional fees to Other for all periods presented to conform to the current period classifications.



SYNCHRONY FINANCIAL
STATEMENTS OF FINANCIAL POSITION
(unaudited, $ in millions)
	Quarter Ended
	Mar 31, 2015			Dec 31, 2014			Sep 30, 2014			Jun 30, 2014			Mar 31, 2014			Mar 31, 2015 vs. Mar 31, 2014
Assets
Cash and equivalents	$	11,218		$	11,828		$	14,808		$	6,782		$	5,331		$	5,887		110.4	%
Investment securities	3,121			1,598			325			298			265			2,856			NM
Loan receivables:
Unsecuritized loans held for investment	33,424			34,335			30,474			28,280			29,101			4,323			14.9	%
Restricted loans of consolidated securitization entities	24,824			26,951			26,293			26,593			25,184			(360		)	(1.4	)%
Total loan receivables	58,248			61,286			56,767			54,873			54,285			3,963			7.3	%
Less: Allowance for loan losses	(3,255		)	(3,236		)	(3,102		)	(3,006		)	(2,998		)	(257		)	8.6	%
Loan receivables, net	54,993			58,050			53,665			51,867			51,287			3,706			7.2	%
Loan receivables held for sale	359			332			1,493			1,458			—			359			NM
Goodwill	949			949			949			949			949			—			—	%
Intangible assets, net	557			519			449			463			464			93			20.0	%
Other assets	1,524			2,431			1,780			1,358			949			575			60.6	%
Total assets	$	72,721		$	75,707		$	73,469		$	63,175		$	59,245		$	13,476		22.7	%

Liabilities and Equity
Deposits:
Interest-bearing deposit accounts	$	34,788		$	34,847		$	32,480		$	30,258		$	27,123		$	7,665		28.3	%
Non-interest-bearing deposit accounts	162			108			209			204			235			(73		)	(31.1	)%
Total deposits	34,950			34,955			32,689			30,462			27,358			7,592			27.8	%
Borrowings:
Borrowings of consolidated securitization entities	13,817			14,967			15,091			15,114			14,642			(825		)	(5.6	)%
Bank term loan	5,651			8,245			7,495			—			—			5,651			NM
Senior unsecured notes	4,592			3,593			3,593			—			—			4,592			NM
Related party debt	—			655			1,405			7,859			8,062			(8,062		)	(100.0	)%
Total borrowings	24,060			27,460			27,584			22,973			22,704			1,356			6.0	%
Accrued expenses and other liabilities	2,675			2,814			3,255			3,347			3,141			(466		)	(14.8	)%
Total liabilities	61,685			65,229			63,528			56,782			53,203			8,482			15.9	%
Equity:
Parent’s net investment	—			—			—			—			6,052			(6,052		)	(100.0	)%
Common stock	1			1			1			1			—			1			NM
Additional paid-in capital	9,418			9,408			9,401			6,399			—			9,418			NM
Retained earnings	1,631			1,079			548			—			—			1,631			NM
Accumulated other comprehensive income:	(14		)	(10		)	(9		)	(7		)	(10		)	(4		)	40.0	%
Total equity	11,036			10,478			9,941			6,393			6,042			4,994			82.7	%
Total liabilities and equity	$	72,721		$	75,707		$	73,469		$	63,175		$	59,245		$	13,476		22.7	%



SYNCHRONY FINANCIAL
AVERAGE BALANCES, NET INTEREST INCOME AND NET INTEREST MARGIN
(unaudited, $ in millions)

	Quarter Ended
	Mar 31, 2015							Dec 31, 2014							Sep 30, 2014							Jun 30, 2014							Mar 31, 2014
				Interest		Average					Interest		Average					Interest		Average					Interest		Average					Interest		Average
	Average			Income/		Yield/		Average			Income/		Yield/		Average			Income/		Yield/		Average			Income/		Yield/		Average			Income/		Yield/
	Balance			Expense		Rate		Balance			Expense		Rate		Balance			Expense		Rate		Balance			Expense		Rate		Balance			Expense		Rate
Assets
Interest-earning assets:
Interest-earning cash and equivalents	$	11,331		$	6	0.21	%	$	13,631		$	7	0.20	%	$	9,793		$	4	0.16	%	$	5,489		$	3	0.22	%	$	4,001		$	2	0.21	%
Securities available for sale	2,725			4		0.60	%	962			1		0.40	%	309			3		3.89	%	285			3		4.22	%	250			3		4.92	%

Loan receivables:
Credit cards, including held for sale	57,390			3,079		21.76	%	57,075			3,186		21.68	%	54,891			3,054		22.32	%	52,957			2,860		21.66	%	53,211			2,867		22.10	%
Consumer installment loans	1,057			25		9.59	%	1,072			27		9.78	%	1,070			25		9.37	%	1,004			24		9.59	%	959			23		9.84	%
Commercial credit products	1,305			36		11.19	%	1,379			38		10.70	%	1,412			37		10.51	%	1,387			36		10.41	%	1,311			38		11.89	%
Other	23			—		—	%	21			1		NM		18			—		—	%	15			—		—	%	14			—		—	%
Total loan receivables, including held for sale	59,775			3,140		21.30	%	59,547			3,252		21.21	%	57,391			3,116		21.78	%	55,363			2,920		21.16	%	55,495			2,928		21.64	%
Total interest-earning assets	73,831			3,150		17.30	%	74,140			3,260		17.07	%	67,493			3,123		18.56	%	61,137			2,926		19.20	%	59,746			2,933		20.13	%

Non-interest-earning assets:
Cash and due from banks	497							1,220							1,260							637							561
Allowance for loans losses	(3,272		)					(3,160		)					(3,058		)					(3,005		)					(2,931		)
Other assets	2,802							2,831							2,605							2,446							2,045
Total non-interest-earning assets	27							891							807							78							(325		)

Total assets	$	73,858						$	75,031						$	68,300						$	61,215						$	59,421

Liabilities
Interest-bearing liabilities:
Interest-bearing deposit accounts	$	34,981		$	137	1.59	%	$	33,980		$	139	1.59	%	$	31,459		$	126	1.61	%	$	28,568		$	109	1.53	%	$	26,317		$	96	1.50	%
Borrowings of consolidated securitization entities	14,101			52		1.50	%	14,766			57		1.50	%	15,102			57		1.51	%	14,727			54		1.47	%	14,830			47		1.30	%
Bank term loan⁽¹⁾	6,531			47		2.92	%	8,057			46		2.22	%	3,747			28		3.00	%	—			—		—	%	—			—		—	%
Senior unsecured notes⁽¹⁾	4,093			35		3.47	%	3,593			32		3.46	%	1,797			18		4.02	%	—			—		—	%	—			—		—	%
Related party debt⁽¹⁾	407			4		3.99	%	843			8		3.68	%	4,582			15		1.31	%	7,959			43		2.17	%	8,286			47		2.33	%
Total interest-bearing liabilities	60,113			275		1.86	%	61,239			282		1.79	%	56,687			244		1.73	%	51,254			206		1.61	%	49,433			190		1.58	%

Non-interest-bearing liabilities
Non-interest-bearing deposit accounts	142							182							206							221							331
Other liabilities	2,854							3,382							3,208							3,412							3,182
Total non-interest-bearing liabilities	2,996							3,564							3,414							3,633							3,513

Total liabilities	63,109							64,803							60,101							54,887							52,946

Equity
Total equity	10,749							10,228							8,199							6,328							6,475

Total liabilities and equity	$	73,858						$	75,031						$	68,300						$	61,215						$	59,421
Net interest income				$	2,875						$	2,978						$	2,879						$	2,720						$	2,743

Interest rate spread⁽²⁾						15.44	%						15.28	%						16.83	%						17.59	%						18.55	%
Net interest margin⁽³⁾						15.79	%						15.60	%						17.11	%						17.84	%						18.83	%

(1) Interest on liabilities calculated above utilizes monthly average balances. The effective interest rates for the quarters ended March 31, 2015, December 31, 2014 and September 30, 2014, were as follows: GECC loan 4.23%, 4.21% and 4.21%; Bank term loan 2.21%, 2.19% and 2.21%; Senior unsecured notes 3.41%, 3.52% and 3.62% respectively. The Bank term loan effective rate for the quarters ended March 31, 2015 and September 30, 2014 excludes the impact of charges incurred in connection with prepayments of the loan.
(2) Interest rate spread represents the difference between the yield on total interest-earning assets and the rate on total interest-bearing liabilities.
(3) Net interest margin represents net interest income divided by average interest-earning assets.



SYNCHRONY FINANCIAL
BALANCE SHEET STATISTICS
(unaudited, $ in millions, except per share statistics)

	Quarter Ended
	Mar 31, 2015			Dec 31, 2014			Sep 30, 2014			Jun 30, 2014			Mar 31, 2014			Mar 31, 2015 vs. Mar 31, 2014
BALANCE SHEET STATISTICS
Total common equity	$	11,036		$	10,478		$	9,941		$	6,393		$	6,042		$	4,994	82.7	%
Total common equity as a % of total assets	15.18		%	13.84		%	13.53		%	10.12		%	10.20		%			4.98	%

Tangible assets	$	71,215		$	74,239		$	72,071		$	61,763		$	57,832		$	13,383	23.1	%
Tangible common equity⁽¹⁾	$	9,530		$	9,010		$	8,543		$	4,981		$	4,629		$	4,901	105.9	%
Tangible common equity as a % of tangible assets⁽¹⁾	13.38		%	12.14		%	11.85		%	8.06		%	8.00		%			5.38	%
Tangible common equity per share⁽¹⁾	$	11.43		$	10.81		$	10.24		$	7.07		$	6.57		$	4.86	74.0	%

REGULATORY CAPITAL RATIOS⁽²⁾
Basel I
Total risk-based capital ratio⁽³⁾	18.2		%	16.2		%	16.4		%
Tier 1 risk-based capital ratio⁽⁴⁾	16.9		%	14.9		%	15.1		%
Tier 1 common ratio⁽⁵⁾	16.9		%	14.9		%	15.1		%
Tier 1 leverage ratio⁽⁶⁾	13.7		%	12.5		%	12.2		%

Basel III
Tier 1 common ratio⁽⁷⁾	16.4		%	14.5		%	14.6		%

(1) Tangible Common Equity ("TCE") is a non-GAAP measure. We believe TCE is a more meaningful measure to investors of the net asset value of the Company. For corresponding reconciliation of TCE to a GAAP financial measure see Reconciliation of Non-GAAP Measures and Calculations of Regulatory Measures.
(2) Regulatory capital metrics as of the end of 3Q 2014 are preliminary and therefore subject to change. As a new savings and loan holding company, the Company historically has not been required by regulators to disclose capital ratios, and therefore these ratios are non-GAAP measures. See Reconciliation of Non-GAAP Measures and Calculation of Regulatory Measures for components of capital ratio calculations.
(3) Total risk-based capital ratio is the ratio of total risk-based capital divided by risk-weighted assets.
(4) Tier 1 risk-based capital ratio is the ratio of Tier 1 capital divided by risk-weighted assets.
(5) Tier 1 common ratio is the ratio of common equity Tier 1 capital divided by risk-weighted assets.
(6) Tier 1 leverage ratio is calculated based on Tier 1 capital divided by total assets, after certain adjustments.
(7) Our Basel III Tier 1 common ratio is the ratio of common equity Tier 1 capital to total risk-weighted assets, each as calculated in accordance with the U.S. Basel III capital rules (on a fully phased-in basis). Our Basel III Tier 1 common ratio is a preliminary estimate reflecting management’s interpretation of the final Basel III capital rules adopted in July 2013 by the Federal Reserve Board, which have not been fully implemented, and our estimate and interpretations are subject to, among other things, ongoing regulatory review and implementation guidance.



SYNCHRONY FINANCIAL
PLATFORM RESULTS AND RECONCILIATION OF NON-GAAP MEASURES
(unaudited, $ in millions)
	Quarter Ended
	Mar 31, 2015			Dec 31, 2014			Sep 30, 2014			Jun 30, 2014			Mar 31, 2014			1Q'15 vs. 1Q'14
RETAIL CARD
Purchase volume^(1),(2)	$	18,410		$	24,855		$	20,991		$	21,032		$	16,713		$	1,697		10.2	%
Period-end loan receivables	$	39,685		$	42,308		$	38,466		$	37,238		$	37,175		$	2,510		6.8	%
Average loan receivables, including held for sale	$	40,986		$	40,929		$	39,411		$	38,047		$	38,223		$	2,763		7.2	%
Average active accounts (in thousands)^(2),(3)	49,617			49,871			48,433			47,248			48,168			1,449			3.0	%

Interest and fees on loans⁽²⁾	$	2,337		$	2,405		$	2,299		$	2,158		$	2,178		$	159		7.3	%
Other income⁽²⁾	86			141			78			92			96			(10		)	(10.4	)%
Platform revenue, excluding retailer share arrangements⁽²⁾	2,423			2,546			2,377			2,250			2,274			149			6.6	%
Retailer share arrangements⁽²⁾	(651		)	(686		)	(683		)	(577		)	(584		)	(67		)	11.5	%
Platform revenue⁽²⁾	$	1,772		$	1,860		$	1,694		$	1,673		$	1,690		$	82		4.9	%

PAYMENT SOLUTIONS
Purchase volume⁽¹⁾	$	2,948		$	3,419		$	3,226		$	3,115		$	2,687		$	261		9.7	%
Period-end loan receivables	$	11,833		$	12,095		$	11,514		$	11,014		$	10,647		$	1,186		11.1	%
Average loan receivables	$	11,970		$	11,772		$	11,267		$	10,785		$	10,775		$	1,195		11.1	%
Average active accounts (in thousands)⁽³⁾	7,271			7,113			6,892			6,692			6,737			534			7.9	%

Interest and fees on loans	$	403		$	426		$	405		$	379		$	372		$	31		8.3	%
Other income	5			9			7			8			8			(3		)	(37.5	)%
Platform revenue, excluding retailer share arrangements	408			435			412			387			380			28			7.4	%
Retailer share arrangements	(8		)	(11		)	(9		)	(12		)	(9		)	1			(11.1	)%
Platform revenue	$	400		$	424		$	403		$	375		$	371		$	29		7.8	%

CARECREDIT
Purchase volume⁽¹⁾	$	1,781		$	1,807		$	1,787		$	1,831		$	1,686		$	95		5.6	%
Period-end loan receivables	$	6,730		$	6,883		$	6,787		$	6,621		$	6,463		$	267		4.1	%
Average loan receivables	$	6,819		$	6,846		$	6,713		$	6,531		$	6,497		$	322		5.0	%
Average active accounts (in thousands)⁽³⁾	4,716			4,683			4,582			4,446			4,437			279			6.3	%

Interest and fees on loans	$	400		$	421		$	412		$	383		$	378		$	22		5.8	%
Other income	10			12			11			12			11			(1		)	(9.1	)%
Platform revenue, excluding retailer share arrangements	410			433			423			395			389			21			5.4	%
Retailer share arrangements	(1		)	(1		)	(1		)	(1		)	(1		)	—			—	%
Platform revenue	$	409		$	432		$	422		$	394		$	388		$	21		5.4	%

TOTAL SYF
Purchase volume^(1),(2)	$	23,139		$	30,081		$	26,004		$	25,978		$	21,086		$	2,053		9.7	%
Period-end loan receivables	$	58,248		$	61,286		$	56,767		$	54,873		$	54,285		$	3,963		7.3	%
Average loan receivables, including held for sale	$	59,775		$	59,547		$	57,391		$	55,363		$	55,495		$	4,280		7.7	%
Average active accounts (in thousands)^(2),(3)	61,604			61,667			59,907			58,386			59,342			2,262			3.8	%

Interest and fees on loans⁽²⁾	$	3,140		$	3,252		$	3,116		$	2,920		$	2,928		$	212		7.2	%
Other income⁽²⁾	101			162			96			112			115			(14		)	(12.2	)%
Platform revenue, excluding retailer share arrangements⁽²⁾	3,241			3,414			3,212			3,032			3,043			198			6.5	%
Retailer share arrangements⁽²⁾	(660		)	(698		)	(693		)	(590		)	(594		)	(66		)	11.1	%
Platform revenue⁽²⁾	$	2,581		$	2,716		$	2,519		$	2,442		$	2,449		$	132		5.4	%

(1) Purchase volume, or net credit sales, represents the aggregate amount of charges incurred on credit cards or other credit product accounts less returns during the period.
(2) Includes activity and balances associated with loan receivables held for sale.
(3) Active accounts represent credit card or installment loan accounts on which there has been a purchase, payment or outstanding balance in the current month.



SYNCHRONY FINANCIAL
RECONCILIATION OF NON-GAAP MEASURES AND CALCULATIONS OF REGULATORY MEASURES
(unaudited, $ in millions, except per share statistics)
	Quarter Ended
	Mar 31, 2015			Dec 31, 2014			Sep 30, 2014			Jun 30, 2014			Mar 31, 2014
COMMON EQUITY MEASURES
GAAP Total common equity	$	11,036		$	10,478		$	9,941		$	6,393		$	6,042
Less: Goodwill	(949		)	(949		)	(949		)	(949		)	(949		)
Less: Intangible assets, net	(557		)	(519		)	(449		)	(463		)	(464		)
Tangible common equity	$	9,530		$	9,010		$	8,543		$	4,981		$	4,629
Adjustments for certain other intangible assets, deferred tax liabilities and certain items in accumulated comprehensive income (loss)	293			287			292
Basel I - Tier 1 capital and Tier 1 common equity	$	9,823		$	9,297		$	8,835
Adjustments for certain other intangible assets and deferred tax liabilities	(12		)	(20		)	(24		)
Basel III - Tier I common equity	$	9,811		$	9,277		$	8,811

RISK-BASED CAPITAL
Basel I - Tier 1 capital and Tier 1 common equity	$	9,823		$	9,297		$	8,835
Add: Allowance for loan losses includible in risk-based capital	759			809			760
Basel I - Risk-based capital	$	10,582		$	10,106		$	9,595

ASSET MEASURES
Total assets	$	72,721		$	75,707		$	73,469
Adjustments for:
Disallowed goodwill and other disallowed intangible assets, net of related deferred tax liabilities	(1,213		)	(1,181		)	(1,110		)
Other	136			79			4
Total assets for leverage purposes - Basel I	$	71,644		$	74,605		$	72,363

Risk-weighted assets - Basel I	$	58,184		$	62,270		$	58,457
Additional risk weighting adjustments related to:
Deferred taxes	1,224			1,321			1,319
Loan receivables delinquent over 90 days	528			581			526
Other	(10		)	(10		)	(2		)
Risk-weighted assets - Basel III (fully phased-in)	$	59,926		$	64,162		$	60,300

TANGIBLE COMMON EQUITY PER SHARE
GAAP book value per share	$	13.24		$	12.57		$	11.92		$	9.06		$	8.57
Less: Goodwill	(1.14		)	(1.14		)	(1.14		)	(1.34		)	(1.34		)
Less: Intangible assets, net	(0.67		)	(0.62		)	(0.53		)	(0.66		)	(0.67		)
Tangible common equity per share	$	11.43		$	10.81		$	10.25		$	7.06		$	6.56

Synchrony Financial - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - April 17, 2015

Attached files

Synchrony Financial Reports