Synchrony Financial has released its monthly charge-off and delinquency statistics for the thirteen months ended June 30, 2024. The period-end loan receivables as of June 30, 2024, amounted to $102.3 billion, showing a slight decrease from the previous month's $102.4 billion.
The 30+ delinquency rate as of June 30, 2024, stood at 4.5%, consistent with the rate in May 2024, but showing an increase from 3.8% in June 2023. The net charge-off rate for June 2024 was 6.1%, slightly down from 6.5% in May 2024, and up from 4.7% in June 2023.
The average loan receivables, including those held for sale, were $102.0 billion for June 2024, up from $101.4 billion in May 2024, and reflecting a gradual increase from $93.9 billion in June 2023.
The recovery adjustment for June 2024 was 0.1%, compared to (0.1)% in May 2024 and 0.1% in June 2023. When considering the adjusted net charge-off rate, which includes the recovery adjustment, June 2024 saw a rate of 6.1%, marking a slight decrease from 6.4% in May 2024, and an increase from 4.7% in June 2023.
These metrics demonstrate the continued impact of moderation in customer payment rates, with both the 30+ delinquency rate and net charge-off rate showing year-over-year increases, reflecting a notable change in the company's financial performance compared to the same period in the previous year. The market has reacted to these announcements by moving the company's shares 2.0% to a price of $51.71. For more information, read the company's full 8-K submission here.
