Synchrony Financial has reported an increase in its 30+ delinquency rate and net charge-off rate as of March 31, 2024, compared to the same period last year. The 30+ delinquency rate stood at 4.7% in March 2024, up from 3.8% in March 2023, while the net charge-off rate increased to 6.6% from 4.5% over the same period.
In terms of loan receivables, at the end of March 2024, Synchrony Financial reported $101.7 billion, compared to $91.1 billion in March 2023. The average loan receivables, including those held for sale, also saw an increase, reaching $101.2 billion in March 2024, up from $90.3 billion in March 2023.
The company also provided the following data on the 30+ delinquency rate and net charge-off rate for the past 13 months:
- 30+ delinquency rate:
- March 2024: 4.7%
- February 2024: 5.0%
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January 2024: 4.9%
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Net charge-off rate:
- March 2024: 6.6%
- February 2024: 6.5%
- January 2024: 5.8%
The press release notes that the year over year increase in the 30+ delinquency rate and net charge-off rate for March 2024 reflects the continued impact of moderation in customer payment rates.
It's important to note that the recovery adjustment, representing an adjustment to allocate recoveries evenly across the three calendar months of each respective quarterly reporting period, was also provided. Additionally, the adjusted net charge-off rate, a non-GAAP financial measure that includes the recovery adjustment, was presented as a useful monthly measure indicative of both quarterly and annual net charge-off rates.
Synchrony Financial's financial statistics indicate changes in key metrics over the past year, reflecting the evolving trends in customer payment behaviors and the overall credit environment. As a result of these announcements, the company's shares have moved 2.3% on the market, and are now trading at a price of $43.85. For the full picture, make sure to review Synchrony Financial's 8-K report.
